US POWER: Romania to Join AIB for GOOs by June 2026

• Trump's early policy memos clearly a very risk-positive mix judging by both the initial headlines as well as the follow-up from Reuters. The biggest movers being those seen as most exposed to a quicker, harsher tariff regime - as such CAD, MXN and EUR trade very well indeed - as telegraphed by the surge in overnight vols earlier today.
• It's not just tariff-linked currencies that are benefiting today, with peripheral European currencies with a higher beta to Europe outperforming all others. As such, CZK, PLN and HUF make up the best performers globally - having already traded stronger into the headlines.
• In sympathy with the risk-positive backdrop, materials names and stocks with most exposure to global trade in Europe have lurched higher - this puts the likes of Daimler Trucks, BMW, Mercedes solidly higher, with airlines rallying also.
• While US cash trade remains closed - the e-mini S&P now trades through the YTD high, and will presumably gap sharply higher at tomorrow's open should this move hold. Bond futures hold the post-headline rally, with Treasury futures >10 ticks higher - we noted earlier today that bonds are seemingly pricing out the immediate risk of inflation-supporting tariff risk here - which should translate to a lower front-end of the US curve when markets fully reopen Tuesday.

Advisors to US President-elect Donald Trump told Axios that the incoming administration wants regime change in Venezuela but that “doesn't necessarily mean military action.” 

• A Trump adviser involved with foreign policy discussions said: "We wouldn't mind one bit seeing [President Nicolas] Maduro being neighbors with [former Syrian President Bashar al] Assad in Moscow," adding that Maduro is "literally ruining the country ... massive refugee issues, sending criminals to the United States, oil production is down, and there are Chinese, Russians and Cubans in there."
• Axios notes: “Oil interests and investors mounted a pressure campaign late last year to try to smooth relations between the U.S. and Venezuela. In November, they proposed what amounted to an oil-for-migrants deal in which the U.S. would ease sanctions and get more oil products like asphalt from Venezuela. In turn, Venezuela would agree to slow emigration or maybe take back millions of migrants deported from the U.S. But Trump hasn't sounded enthusiastic about striking a deal with Maduro."

• USDJPY is pushing through the low, the weaker Dollar following the earlier tariff story, combined with the lower US Yield have kept the pressure on the USDJPY.
• The next support will be seen just below the figure at 154.97 50-day EMA.
• Latest headline also confirms the WSJ's report that Trump will stop short of imposing Day-One tariffs according to Reuters.