USD: Haven demand focus into Trump SOTU – DBS

💡 DMK Insight

With Trump’s State of the Union Address looming, traders are flocking to safe havens, and here’s why that matters: Market sentiment is often volatile leading up to major political events, and this time is no different. Investors are likely to hedge against uncertainty, which could drive demand for assets like gold and the US dollar. If the address hints at contentious policies or economic instability, we might see a spike in volatility across equities and forex markets. Keep an eye on how gold reacts—if it breaks above recent resistance levels, it could signal a stronger shift towards safe-haven assets. On the flip side, if the address is perceived positively, risk assets might rally, leading to a potential sell-off in havens. Traders should monitor the SOTU closely; any unexpected remarks could trigger rapid market movements. Watch for key levels in gold around its recent highs, and consider positioning accordingly based on the address’s tone and content.