Financial Markets reacted softly to U.S. President Donald Trump’s speech during his inauguration as equities marginally moved higher while the dollar remained relatively stable against other major currencies. However, crude oil prices moved upwards on speculation that exporters may abide to a global agreement to trim production levels. Gold’s performance was mainly affected by the dollar on Friday and managed to remain above the $1,200 per ounce.

Markets were undoubtedly focused on Donald Trump as he eventually took charge of the White House following a rather controversial election and its result. His victory against main rival Hilary Clinton was followed by sharp increases of equity markets and indices, while the dollar also moved upwards. There was a parallel sell-off of T-Bills as markets began relying on Mr Trumps pledge for fiscal stimulus, spending on infrastructure, and less strict regulation that might eventually lead to economic growth and possibly additional interest rate increases at a faster pace than recently communicated by the Federal Reserve (Fed).

Friday’s speech carried a different tone as he pointed the advantages of focusing on the nation’s development through manufacturing, employment, trade agreements and exports. His latest comments left investors to speculate on what will be the upcoming policy changes in the first three months. Some are currently sceptic of what is to come given that the scenario of of boosting government spending implies an increase of the public debt and may eventually have a negative impact on the economy.

Following the week’s low of 2,252.76, the S&P 500 moved to erase those losses and managed to close Friday’s trading session with 0.1% gains. European equity markets were not as optimistic as the Stoxx 600 moved with the same performance but to the opposite direction.

The EUR/USD moved higher during Mr. Trump’s inauguration speech and the increased volatility surrounding the upcoming fiscal policies and their adjustments, it ended Friday’s trading session with 0.4% gains to 1.07006. The dollar moved lower against the Japanese yen also as the USD/JPY decreased by 0.3% to 114.598.

Uncertainty was further fuelled due to concerns projected by President Donald Trump about the dollar strengths and Fed Chairwoman Janet Yellen’s contrasting hawkish comments on interest rates. At the same time, the Mexican peso rallied this time due to the lack of threats against the U.S. southern neighbours Mexico during his speech. The USD/MXN fell on Friday by 1.5% to 21.59339 and erased almost all gains made during the earlier parts of the week.

Equity market activity in Europe was sluggish at the time of Donald Trump’s inauguration while the Japanese stock markets moved upwards with the Nikkei 225 increasing by 0.4% to 19,164. Crude oil increased on Friday by 1.8% and on a weekly basis by an overall 1.4% to $53.20 per barrel.

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