This week, Donald Trump’s inauguration steals the spotlight as investors dissect his first moves on tax cuts, tariffs, and economic reforms. Will the "Trump trades" – a strong dollar, rising bond yields, and soaring equities – keep roaring, or will uncertainty throw markets off balance?
Across the Atlantic, Europe braces for a bumpy ride. With the euro under pressure, energy supply concerns mounting, and inflation risks looming, Trump’s presidency could reshape the region’s economic landscape. Trump’s proposed tariffs – up to 60% on Chinese goods and 10-20% on other imports – threaten Europe’s powerhouse industries, including Germany’s auto sector.
The Buzz Around Trump’s Meme Coin: # TRUMP
Adding a unique twist to the week’s financial developments, Donald Trump’s newly launched cryptocurrency, # TRUMP, has taken the crypto world by storm. Released last week, the meme coin surged from under $10 to a peak of $74.59 by Monday, achieving a fully diluted valuation (FDV) of $70 billion within 60 hours.
Now it's ranked as the 15th largest cryptocurrency globally.
While Trump’s return to power dominates headlines, here are the other key economic events to watch out for. 
The Bank of Japan (BOJ) is meeting to decide its next monetary policy steps, with speculation of a rate hike to 0.5%. A rate hike to 0.5% would likely strengthen the Japanese yen, making currency pairs like USD/JPY drop as the yen gains value. Higher interest rates would also push Japanese Government Bond (JGB) yields up, impacting fixed-income traders.
Meanwhile, a stronger yen could pressure export-heavy Japanese stocks like those in the Nikkei 225, as it makes exports more expensive globally.
The US Flash Services PMI, due January 24, offers an early snapshot of business activity in services and manufacturing. Based on a survey of 400 purchasing managers, it signals economic health—readings above 50.0 show growth, while below 50.0 indicate contraction. As a leading indicator, it provides crucial insights into trends like employment and production. Stronger-than-expected results boost the US dollar and signal economic strength.
That’s it for this week! With Trump’s big day and some key economic drops coming up, stay tuned to see how it all plays out.
