Donald Trump's return to the White House ushers in significant changes across financial markets, influencing trading dynamics as observed in recent shifts. The inauguration day sees the US Dollar weaken, leading to a risk-on market mood that benefits the British Pound, also known as the Cable. The GBP/USD pair starts the week positively, maintaining its recovery gains above 1.2200, highlighting a favorable trading environment.
Amid these changes, the US Dollar attracts fresh sellers, which diminishes part of Friday's positive performance. This decline is further influenced by speculations that the Federal Reserve may reduce interest rates twice within the year. Such prospects contribute to the dollar's depreciation, impacting various financial instruments.
Bitcoin and Ethereum also experience volatility as their prices retest key support levels on Monday. Meanwhile, Ripple continues its rally after surpassing a symmetrical triangle pattern last week, marking a notable upward trend in cryptocurrency markets.
In the commodities market, gold prices benefit from dip-buying at the week's onset. The precious metal builds on its steady intraday ascent during the early European session, reflecting a renewed investor interest. This trend is observed amid broader discussions regarding tax cuts and the Federal Reserve's future policies that loom in the background.
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