Three markets to watch next week (17.01.2025)

In the upcoming week, the most important event will undoubtedly be the inauguration of Donald Trump today. Investors will closely monitor his first days and decisions. It is said that the new administration might issue several executive orders within its first week. A similar situation occurred at the beginning of 2017 when Trump made his first decisions in the initial days of his presidency. Although these were not significant legal changes, they had a strong impact on market sentiment and, consequently, on valuations. For these reasons, this week it will be worth watching instruments such as EURUSD, US2000, and Bitcoin.

EURUSD

In recent days, the dollar has remained in the spotlight, maintaining a strong upward trend that began after the election results in early November last year. Recent events, including Trump's statements, have triggered more bullish moves on the dollar. Despite Trump frequently pointing out that the currency is overvalued and potentially intending to take decisive action toward devaluing the dollar and boosting the competitiveness of domestic businesses, volatility in the dollar, including in the EURUSD pair, could be exceptionally high.

US2000

In 2017, the small-cap index performed the best among the major U.S. indices. In the initial days, we are unlikely to see tangible measures improving the situation for smaller businesses. However, Trump's statements and those of the rest of the administration could influence investor sentiment.

Bitcoin

The cryptocurrency market is expected to be one of the main beneficiaries of the new administration. Donald Trump has made many promises, including introducing positive regulations, establishing the U.S. as a cryptocurrency hub, and preventing the sale of Bitcoins currently held by the U.S. government. It is possible that Trump may take his first positive steps for this market in the coming days, considering the significant involvement of the entire new administration in this sector.