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Market Update 21/01/2025

Welcome to our daily market update, where we help keep you informed on the latest happenings in the world of FX. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

President Trump’s inauguration sparked market trading enthusiasm. After the Wall Street Journal reported that Trump would outline his trade agenda but not impose new tariffs immediately, the market began to become active. U.S. stock index futures rose, and the dollar fell sharply. The Nasdaq traded up 1.5%, the Dow Jones rose 0.8%, and the S&P 500 index increased 0.4%. The AUD/USD jumped from near 0.6200 to above 0.6260, and rose to a high of 0.62865 after the report was confirmed. Elsewhere, NZD/USD rose to 0.5680, EUR/USD broke through 1.0400, reaching a high of 1.0430, and GBP/USD touched a high of 1.2326. USD/CAD fell to a low of 1.4262, while USD/JPY dropped to 155.41. The bond market was closed for Martin Luther King Jr. Day, while crude oil fell 1.3% to $76.45 per barrel.

President Trump declared a national emergency at the southern border and said he would send troops to enforce the policy. Notably, he directed his cabinet to combat inflation, labeled drug cartels as terrorist organizations, stated that U.S. astronauts would land on Mars, announced the renaming of the Gulf of Mexico to the Gulf of America, and said the U.S. would reclaim the Panama Canal.

Asian stock markets started the week strong, with the Nikkei up 1.2%, Hang Seng up 1.8%, and Shenzhen up 0.5%. The Australian Securities Exchange closed up 0.5%, driven by gains in the information technology and real estate sectors. Additionally, in his inaugural speech,

European stock markets generally opened slightly higher, closing with only modest gains of 0.2-0.4%.

Mid-market rates.

Currency Pair Mid-market Rate
AUD/USD 0.6271
AUD/NZD 1.1054
AUD/JPY 97.61
AUD/CNY 4.5551
AUD/EUR 0.6021
AUD/GBP 0.5088
AUD/HKD 4.8771

 

Chart of the day

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