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The markets are bracing for volatility this week as new U.S. EU tariffs and a Supreme Court decision collide.
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Earnings and key U.S. data may reset expectations for growth and inflation across global assets.
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Bitcoins and crypto face macro-pressure from Fed liquidity moves, and shifting risk sentiment.
The global markets are in for a busy trading week, as the convergence of new U.S. Tariff actions, legal scrutiny and closely watched economic statistics is intensifying. Investors are preparing to experience increased anxiety when trading resumes after the U.S. markets were closed on Monday for Martin Luther King Jr. Day.
Donald Trump announced over the weekend a new 10% import tariff on goods from the European Union. The move is the first major escalation of U.S.-EU trading measures in almost three months, and targets trade flows valued at approximately $1.5 trillion. When the markets reopen, stock market futures will likely react.
The Supreme Court of the United States is expected to issue a ruling on Tuesday regarding the legal validity and the tariffs imposed by Trump. The case has been delayed twice and market participants are closely watching the outcome. The outcome of the case, whether it is to uphold or knock down the tariffs, will have implications on trade policy expectations, currency markets and risk sentiment.
U.S. Economic Data in Focus
U.S. Economic Data in Focus
Later in the week, several economic releases from the United States are scheduled. Wednesday will see the release of December’s pending home sales, followed by the third quarter 2025 GDP data and November’s personal consumption expenditures inflation data.
S&P Global’s purchasing managers’ index (PMI), which measures business activity, will be updated on Friday, January. The earnings season is also fast approaching. Around 10% of S&P500 companies are expected to report results this week.
Crypto Markets Face Macro-Convergence
Crypto Markets Face Macro-Convergence
Bitcoin fell on the digital asset markets on January 18, amid a drop in volumes compared to the previous week. Now, the focus is on a series macro-events that are expected to have a significant impact on price direction in the near term.
The Federal Reserve will release $15 billion in liquidity through Treasury Bill operations on Monday, adding cash to the funding markets. Tuesday, the FOMC will release its economic statement. This will include an update of official assessments of growth and inflation as well as interest rate expectations. Tuesday is also the day that the Supreme Court will rule on tariffs, which is in line with these monetary developments.
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