There are only second tier data releases in the US calendar for this week, allowing markets to digest the impact of US politics on equities, bonds and the USD. President Trump’s inauguration speech was a repeat of election pledges but failed to reach out to local political opponents and international partners, causing the USD to weaken, especially against the JPY, even as other market segments including bonds and equities showed a muted reaction. Market positioning may explain this reaction, but when analysing the impact of protectionism on international capital flows, costs, prices and last but not least on ... (full story)