- This topic has 28,410 replies, 54 voices, and was last updated 34 minutes ago by .
-
Sell America Trade Update
- Weaker stocks: Yes
- Weaker dollar: Yes
- Weaker bonds (higher yields): Yes
While financial news reports will likely focus on weaker stocks and the dollar, the sharp drop in bonds (spike higher in yields) should send alarms in the administration.
How as unpredictable President will react is uncertain but there should be pressure from his advisors to cool down the escalation risk.
Market Update
(Right click on any image (or chart) to open a full screen in a new tab)
Headline alert: Davos speakers (Trump on Wed)
(Right click on any image (or chart) to open a full screen in a new tab)
Forex Market Snapshot
USD is down across-the-board in what looks like a Sell America Trade reaction to Trump’s Greenland tariffs on the EU and UK
USDJPY is trying to join in after diverging earlier. Was it the BoJ in covertly or the market finally waking up to the general USD trend? In any case, USDJPY is clearly pivotal and the bias setting level.
No key US data. SCOTUS could issue its ruling on legality of Trump tariffs.
Note, markets pricing in the worst case basis so convictions are likely to be fragile in this self- induced US (i.e. Trump) led crisis.
Newsquawk Daily Asia-Pac Opening News
(Right click on image or any chart to open a full screen in a new tab)
Heads up: SCOTUS may announce its tariff decision on Tuesday
The Supreme Court may announce opinions on Tuesday, January 20, 2026 the Court’s calendar indicated they may release opinions that day and that they’ll post the orders list around 9:30 a.m. ET, with opinions typically following (and then posted online after announcement).
What are the signs of a “Sell America Trade?”
Investors sell U.S. assets and reduce exposure to the U.S. economy .It usually shows up as selling across markets:
-
- U.S. stocks fall
- U.S. dollar weakens
- U.S. Treasuries sell off (yields rise)
- Money flows into non-U.S. markets (Europe, EM, gold, commodities, etc.)
Investors Hate Uncertainty
Investors hate uncertainty especially when it’s unpredictable, and in this case could affect global trade. In his effort to take Greenland, President Trump’s sudden announcement of new tariffs on imports from several European countries (and their threat to retaliate ) has not only increased economic but geopolitical uncertainty as well.
The uncertainty has seen investors reduce exposure to risky assets like stocks and look for safety in precious metals such as gold and silver at the expense of the dollar.
The dollar, which typically firms in times of geopolitical uncertainty and trade conflicts has done the opposite and weakened as the dispute over Greenland goes beyond just economic issues with political risks should it escalate into a trade war.
In any case, a combination of uncertainty and an unpredictable US President should keep traders on edge until the Greenland saga plays out even though logic says that cooler heads will eventually prevail as no one wins in a trade war.
In addition, we will see how US traders and investors view the dip in stocks when markets reopen on Tuesday.
USDX 4 HOUR CHART
FX option expiries for 19 January 10am New York cut
There are some large ones but nothing that should be too impactful, given how the state of play is developing in the major currencies space.
The Japanese yen remains in focus amid intervention risks as traders continue to keep the pressure on the currency. Fiscal risks remain the main issue with Japan prime minister Takaichi set to officially call for a snap election in her announcement later today.
But with Trump stirring up geopolitical tensions in Greenland, the dollar is also under scrutiny to start the week.
EURUSD Weekly
Lets put some perspective on EUR…
It is right now looking at the range 1.15250 & 1.16650
Unless a clash between USA and EU is EUR supportive ( ehmmm ) , this might be ust the begining of a longer Downtrend.
There are loads of Buy Orders below us, and don’t get surprised when EUR suddenly bounces back up every now and then.
So in my view the main question is : is EUR going to find a real support above 1.14 or we might be on the road to 1.05…Big picture – Big speculations…
NAS100 (NASDAQ) UPDATE
- While it is hard to draw conclusions from US equity moves when the stock markets are closed for a holiday, it is hard to ignore the gap down opening and negative reaction to the Greenland tariff row with the EU and UK,
- With that said, 25062 blocks 25000 and below while back above 25252 and back above the gap is needed on this chart to ease the risk.
NAS100 4 HOUR CHART
Backlash over Greenland
=
(Right click on any image (or chart) to open a full screen in a new tab)Newsquawk Daily Asia-Pac Opening News
(Right click on any image (or chart) to open a full screen in a new tab)
In our blog
(from our How to Become a Better Trader series_
How Traders Make Small Wins but Big Losses and How to Break the Cycle
- You must be logged in to reply to this topic.