Skip to content
Risk warning: Our products are leveraged and carry a high level of risk, which can result in the loss of your entire capital. Such products may not be suitable for all investors. It is crucial to understand the risks involved fully.
  • Support
  • For Institutionals
  • Trading

    Trading Platforms

    • MetaTrader 4 Terminal
    • MetaTrader 5 Terminal
    • PAMM Accounts
    • Equinix Trading Server

    Markets coverage

    • Forex Currencies
    • Spot Metals
    • Commodities

     

    • CFDs on Stocks
    • Indices
    • CFDs on Crypto

    Start Trading

    • Standard Accounts For individuals
    • Institutional Account For professionals
    • Deposits & Withdrawals
  • Conditions

    Trading Conditions

    • Spreads Overview
    • Swap-Free
    • Leverage Information

     

    • CFD Specifications
    • Full Trading Conditions

    Invest on your terms

    Transparent pricing, reduced trading costs, and leverage that adapts to your strategy.

    Explore conditions
  • Tools
    • Weekly Outlook
    • Daily Technical
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
  • Trading
    • Markets Coverage
    • MetaTrader 5 Platform
    • MetaTrader 4 Platform
    • Standard Accounts
    • Institutional Account
    • PAMM Accounts
    • Equinix Trading Server
    • Deposits & Withdrawals
  • Conditions
    • Spreads Overview
    • Leverage Information
    • Swap-Free Trading
    • CFD Specifications
    • Full Trading Conditions
  • Tools
    • Daily Technical
    • Weekly Outlook
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
  • Client Portal
  • Open Account
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
Open Account
Client Portal
Currencies, Markets

Dollar retreats ahead of Trump’s inauguration; euro rebounds from record lows

January 20, 2025 OnEquity

Interest rates are asleep today and US dollar has made big declines in the beginning of this week as it wants to face with a giant political shift with Donald Trump back to the president. The Dollar Index — which gauges the dollar’s stregnth against a basket of six other currencies — fell by 0.3%, closing at 108.925. Even with this decline, the dollar has stayed near it recent highs, which it reached only a week ago.

Dollar Dynamics

The dollar pullback comes after a strong performance, with the dollar up about 4% since the US presidential elections in November. Market participants have wondered whether Trump’s economic plans will be inflationary, leading the Federal Reserve to need to keep interest rates higher for longer. Yet trading volumes will likely be thinner this Monday due to the US Martin Luther King Jr. Day holiday. Investors await Trump’s inaugural address, which he’s expected to deliver on the first day back in office, when he is expected to unveil a slew of executive orders.

“The financial markets are watching closely to see what executive orders the new president announces,” ING analysts noted this morning, especially with regard to tariffs and trade relations with key international partners. They also pointed out that after all the speculation had driven up the dollar for months, and the dollar was now facing some profit-taking in the market, a still very notable interest existed to purchase dollars.

Euro’s Resilience

The euro has stabilized a bit on the European front; the EUR/USD pair is trading 0.3% higher at 1.0313. But it remains close to a two-year low, mainly on concerns of potential trade wars. “Very likely,” European Central Bank member Isabel Schnabel recently made clear, is the only proper response to a trade war, and investors are concerned.

Also, ING noted that the prediction markets show a low probability of EU tariffs over the short run, but warned that the current FX market does not seem fully priced for general tariffs that would negatively impact the euro were they to go into effect.

So far today, we’ve also seen German economic data; producer prices rose just 0.8% year-on-year in December, less than the expected 1.1% increase. Since June 2023, the European Central Bank has reduced interest rates four times and will likely do so again in the months ahead as eurozone inflation cools, falling from double digits to just above the targeted 2%.

British Pound Performance

The British pound has eked out a gain against the dollar, up 0.1 percent at 1.2193. Yet the currency has lost almost 3% in the last month, dragged down by lackluster data that point to deeper interest rate cuts ahead. The Bank of England has already cut rates twice in 2024 and is widely expected to announce further reductions in its February policy meeting.

Japanese Yen and Asian Markets

In Asia, the USD/JPY ticked 0.1% lower to 156.19 amid expectations of an interest rate hike from the Bank of Japan at its next meeting. A raise in BoJ rates is expected, barring any worsening in market turmoil created by the political transition in the US.

The Chinese yuan also ticked weaker against the dollar, with USD/CNY down 0.2% to 7.3143. This follows the People’s Bank of China’s decision to hold its loan prime rates steady to help a struggling yuan and boost liquidity as it works to revive the economy. Despite these efforts, market mood toward the yuan is still cautious.

  • Currencies
  • Dollar
  • Euro
  • Pound
  • Yen

Post navigation

Previous
Next

Search

Categories

  • Analysis (217)
  • Beginner (24)
  • Cryptos (145)
  • Currencies (188)
  • Daily Technical (147)
  • Education (64)
  • Expert (23)
  • Intermediate (17)
  • Markets (434)
  • News & Releases (22)
  • Stocks (290)
  • Uncategorized (1)
  • Weekly Outlook (69)

Recent posts

  • Trading Hours Update – Additional Changes for August 2025
  • Today’s stocks to watch: Berkshire, Boeing, and Amazon
  • U.S. stock futures rise on heightened hopes for interest rate cuts

Tags

Analysis Bitcoin Cardano CPI Crypto Cryptocurrencies Currencies Daily Dollar earnings Education Elections ETF ETFs Ethereum Euro Fed Index inflation Litecoin Market Markets Nasdaq oil Outlook Pound Ripple SEC Solana Stablecoin Stock Market Stocks Stocks Market Stocks today Technical Technical Analysis Technology Tether Trading Trump Wall Street Weekly Weekly Outlook Yen Yuan

Related posts

Currencies, Markets

Dollar falls sharply after poor employment data; will the Fed cut rates next month?

August 4, 2025 Carlos Sereno

The U.S. dollar continued its decline on Monday, extending Friday’s sharp losses following a disappointing U.S. labor market report that bolstered expectations for early Federal Reserve rate cuts. At 04:20 ET (08:20 GMT), the U.S. Dollar Index—measuring the greenback against six major currencies—fell 0.2% to 98.722, after dropping more than 1% on Friday. Friday’s report […]

Analysis, Daily Technical

Daily Technical Analysis EUR/USD: Surge Slows at Multi-Year Highs — Tax Reform and Yields Bring Gains to a Stop

July 2, 2025 OnEquity

The EUR/USD pair remained flat during Wednesday’s session, hovering around 1.1780 after briefly touching a multi-year high of 1.1830. The euro’s advance lost steam following the U.S. Senate’s approval of President Trump’s $3.3 trillion “One Big Beautiful Bill,” which includes the entirety of his legislative agenda. The bill, passed by a 51–50 margin with Vice […]

Currencies, Markets

Dollar Drops to Multi-Year Lows, Rate Cuts, Trade Agreements, and Tax Reform in the Public Eye

July 1, 2025 OnEquity

The U.S. dollar extended its decline on Tuesday, falling to multi-year lows amid growing expectations of Federal Reserve rate cuts and rising fiscal concerns sparked by President Donald Trump’s spending bill. By 04:25 ET (08:25 GMT), the U.S. Dollar Index—measuring the greenback against a basket of six major currencies—was down 0.2% at 96.275, marking its […]

  • Privacy policy
  • Client agreement
  • Legal
  • Support
  • +2484671965
  • [email protected]
  • Chat with us
Company
  • About us
  • Regulation
  • Safety of funds
  • Company news
  • Insights
  • FAQ
Account options
  • Standard accounts
  • Institutional account
  • PAMM accounts
  • Swap-free account
Conditions
  • Spreads overview
  • Leverage tiers
  • CFD specifications
  • Markets coverage
Trading tools
  • MetaTrader 5
  • MetaTrader 4
  • Equinix trading server
  • Economic calendar
  • Daily technical
  • Weekly outlook
  • Market commentary
OnEquity Ltd is incorporated in Seychelles as a Securities Dealer with License No. SD154, authorized by the Seychelles Financial Services Authority (FSA), adhering to the Consolidated Securities Act, 2007. Registration No. 810588-1.

The website is operated and provides content by the OnEquity group of companies, which include:

OnEquity SA (Pty) Ltd, incorporated in South Africa, Company reg. 2021/321834/07, regulated by the Financial Sector Conduct Authority (FSCA) with FSP No. 53187.

OnEquity LLC, recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020.

ONEQ Global Ltd, registered in Cyprus, Company reg. HE 435383, located at Agias Zonis 22, Limassol, focusing on comprehensive service solutions within the OnEquity Group.
Risk Disclosure: Trading in financial instruments involves substantial risk and may not be suitable for all investors. The value of investments is volatile and can result in total loss of capital. Investors should consider their financial situation, investment experience, and risk tolerance, and may seek professional advice. Past performance is not indicative of future results.

Eligibility: Services are available to individuals 18 years or older.

Restricted Jurisdictions: The content provided by OnEquity is not intended for residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, Syria, or any jurisdiction where such distribution or use would be contrary to local law or regulation.

All trademarks™ and brand names belong to their respective owners and are used here for identification purposes only. Use of these names does not imply endorsement.
© OnEquity. All Rights Reserved.