Newspaper (Asia Pacific) News: Prior to Trump's second inauguration ceremony, on Monday (January 20th), the US dollar fell slightly against most major currencies, prompting traders to reduce their positions that were generally bullish on the US dollar.

The US dollar index fell by as much as 0.3%, and Trump's phone call with Chinese President Xi Jinping last Friday helped ease market concerns about the US China trade tensions. Due to the low market liquidity caused by the US holidays, this factor may have exacerbated the weakness of the US dollar against currencies such as the Australian dollar and offshore Chinese yuan.

Everyone is waiting for a major event - Trump's speech and the executive orders that come with it, "said Rodrigo Catril, a strategist at the National Australia Bank in Sydney." Liquidity is weak, so price volatility signals should be treated with caution

Previously, according to the latest data from the Commodity Futures Trading Commission (CFTC), speculative currency traders have raised their bullish bets on the US dollar to the highest level since 2019. With Trump's election, betting on the strength of the US dollar has become one of the favored trades in the market, which increases the risk of significant market volatility if these positions are closed.

The New Zealand dollar and Australian dollar, both heavily influenced by global risk sentiment, rose against the US dollar on Monday. Another currency sensitive to global trade and economic growth, the Korean won, led the rise of Asian currencies.

The market is boosted by the sentiment of the phone call between Trump and Xi Jinping, "said Carol Kong, a strategist at the Commonwealth Bank of Australia." The market has high expectations for this week's policy announcement. The risk is that President Trump has failed to deliver on his big promises, which could provide more relief for the market.