Monday Morning Must-Knows - January 20, 2025

Monday Morning Must-Knows by Trading Academy

January 20, 2025

Could Japan's Rate Hike Shake U.S. Dollar?

The past two weeks have been eventful in the markets. Two weeks ago, major indexes saw sharp declines, but last week brought a strong bullish reversal with nearly 3% gains across the board. This week starts with the Martin Luther King Jr. holiday on Monday, closing most markets except for crypto. 

The big political event is President Trump’s second-term inauguration, with major administrative changes that could stir market volatility.

The trading week resumes Tuesday with earnings reports from companies like Netflix, 3M, and Johnson & Johnson. 

Financials showed strength last week, and banks continue to benefit from rising yields. This week, watch for earnings from Progressive and Travelers, as California wildfires may impact insurers.

Globally, manufacturing and services data from Europe and the U.S. will influence currency markets. 

Additionally, the Bank of Japan’s potential rate hike could disrupt carry trades and impact the U.S. dollar. 
Stay cautious during this volatile period and prepare for sharp market moves.

As always, if you’re in the markets, make sure you have a trade plan. Join us for a FREE introductory class. Learn about tools & rules for trading with confidence-so you can stay one step ahead of market volatility. Stay Informed, Start Knowing Today!