Macro outlook for next week: The Trump 2.0 era is about to begin, and Bitcoin may fly higher

PANews reported on January 18 that in the last trading week before Trump returns to the White House, favorable inflation data and dovish remarks from Federal Reserve Governor Waller have revived market expectations for interest rate cuts. Money markets are currently pricing in a 2025 Fed rate cut of about 40 basis points. With the Federal Reserve entering a quiet period and U.S. economic data next week being relatively light, the market will focus on the start of the Trump presidency and its potential market impact. Here are the key points that the market will focus on in the new week:

The annual meeting of the World Economic Forum in Davos is held on Monday until January 24;

At 23:00 on Wednesday, the monthly rate of the US Conference Board's leading indicators in December;

European Central Bank President Christine Lagarde delivers a speech at 23:05 on Wednesday and 18:00 on Friday;

At 21:30 on Thursday, the number of initial jobless claims in the United States for the week to January 18;

To be determined on Friday, the Bank of Japan will announce its interest rate decision and economic outlook report. At 12:30, Bank of Japan Governor Kazuo Ueda will hold a monetary policy press conference;

At 22:45 on Friday, the preliminary S&P global manufacturing and services PMI values ​​for January in the United States were released.

With Trump expected to announce crypto-friendly policies, Bitcoin has the potential to soar even higher. Trump plans to issue an executive order to elevate cryptocurrencies to a "policy priority" and give industry insiders a say in his government, signaling a possible major shift in U.S. cryptocurrency policy, according to people familiar with the matter. It is reported that the executive order will also include suspending any litigation involving cryptocurrency and considering establishing a national Bitcoin reserve.