1. Powell heads for Capitol Hill, Trump expected to dominate the‘hyper-charged’ hearings.

2. U.S. Government faces potential shutdown in March: Senate democratic leader preempts blame game.

3. Brazil could tax US digital platforms in retaliation to Trump’s Tariff Threat.

4. ECB’s Lagarde says disinflation on track but global trade friction poses risks.

5. European nations slam Trump’s 25% steel and aluminum tariffs

Federal Reserve Chair Jerome Powell faces a tough set of hearings this week on Capitol Hill with both Democrats and Republicans likely to prod him on President Donald Trump’s policies ranging from banking regulations to a rollback of diversity, equity and inclusion efforts that has already engulfed the central bank. Trump’s proposals on trade, taxation, immigration and regulation cast uncertainty over the US economic outlook, complicating the Fed’s efforts to lower inflation and sustain a healthy labor market.

Senate Democratic Leader Chuck Schumer is attempting to shift the blame for the potential U.S. government shutdown in March onto Senate Majority Leader John Thune (R-S.D.) and the Republican members of Congress. Schumer accused Thune of abandoning the regular order of moving appropriations bills to the floor. It is incumbent on responsible Republicans to get serious and work in a bipartisan fashion to avoid a Trump Shutdown.

In response to the potential 25% tariff on steel and aluminum imports to the United States proposed by U.S. President Donald Trump, Brazil's Finance Minister Fernando Haddad said on Wednesday (local time) that the Brazilian government would await a formal decision from the U.S. side before making any official statement.

Earlier, Brazilian media had reported that if the U.S. were to impose tariffs on Brazilian steel and aluminum products, the Brazilian government could tax US digital platforms as a retaliatory measure. The Brazilian government is reportedly studying this potential countermeasure.

However, Minister Haddad clarified that the Brazilian government would not respond to "statements that could be misinterpreted or withdrawn," and emphasized that it is waiting for concrete measures from the U.S. administration. The decision on whether to levy a digital tax on U.S. tech companies as a countermeasure will ultimately be made by President Luiz Inácio Lula da Silva.

The President of the European Central Bank, Lagarde, stated on Tuesday that the process of inflation retreat is proceeding smoothly, which is expected to reach the 2% target set by the European Central Bank this year. However, the escalation of Global trade frictions will make the inflation outlook for the Eurozone more uncertain. Lagarde reiterated that decision-makers will formulate appropriate monetary policy based on data and successive meetings, rather than pre-committing to a specific interest rate path.

The market is currently widely expecting the European Central Bank (ECB) to conduct its sixth interest rate cut in this cycle in March, with the majority of officials expressing confidence that the inflation target can be achieved within the next few months. However, the risks of inflation overshooting or undershooting the target are prevalent, adding uncertainty to the further trajectory of monetary policy.

Feb 10，local time, US President Donald Trump signed proclamations raising the U.S. tariff rate on aluminum to 25% from his previous 10% rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals. A White House official confirmed the measures would take effect on March 4. On October 10, several European countries issued responses to recent developments. French Foreign Minister Jean-Noël Barrot stated that the European Union will retaliate against any tariffs imposed by the United States and will "unhesitatingly defend its own interests." José Manuel Albares, Minister for Foreign Affairs of Spain, emphasized that the EU will address any potential scenarios and will safeguard the interests of the EU Single Market. Dr Robert Habeck, Vice Chancellor of Germany and Federal Minister for Economic Affairs, also released a statement, asserting that Europe will respond to unilateral trade restrictions in a "united and resolute manner." The statement underscored that, in the long run, a trade war would only produce losers.

Utc+8 18:00 ECB Executive Board Member Elderson Speaks on Climate Action

Utc+8 21:30 U.S. January CPI

Utc+8 23:00 Powell Testifies on Semi-Annual Monetary Policy to House Committee

Utc+8 01:00 ECB Governing Council Member Nagel on Eurozone Economic Outlook

Utc+8 01:00 Atlanta Fed President Bostic on Economic Prospects

Utc+8 02:30 Bank of Canada January Meeting Minutes

Trading in financial markets has become more accessible than ever, with online platforms offering opportunities for beginners to start with relatively small amounts. However, determining the minimum amount required to begin trading depends on several factors, including the type of market, trading strategy, risk tolerance, and broker requirements. In this guide, we will break down the capital needed to start trading in stocks, forex, cryptocurrencies, and other markets while providing tips for success.

Before jumping into specific amounts, it is essential to consider the following factors that influence the minimum amount needed:

Market Type: Different markets have varying capital requirements. Stocks typically require more initial capital than forex or cryptocurrencies.

Brokerage Requirements: Some brokers have minimum deposit requirements, which can range from $10 to $500 or more.

Leverage Availability: Markets like forex offer leverage, allowing traders to control larger positions with less capital.

Trading Strategy: Day trading requires more capital than long-term investing due to the need for liquidity and frequent trades.

Risk Management: It is advisable to allocate only a portion of your total capital to trading to mitigate risks.

Stock trading typically requires a higher initial investment compared to other markets due to margin requirements and trade commissions. Here’s a breakdown:

Traditional Stock Investing: Most brokers allow buying stocks with as little as $100–$500.

Day Trading Stocks: In the U.S., the Pattern Day Trader (PDT) rule requires a minimum balance of $25,000 to actively day trade stocks.

Fractional Shares: Some brokers allow trading fractional shares, enabling beginners to invest with as little as $5–$50.

Forex (foreign exchange) trading offers flexibility due to leverage. The minimum capital depends on the broker and account type:

Micro Accounts: Some brokers offer accounts with as little as $10–$50.

Standard Accounts: Typically require $100–$500 to start trading effectively.

Leverage Considerations: Many brokers provide leverage of up to 1:100, allowing traders to control larger positions with a smaller deposit.

Cryptocurrency trading has a low entry barrier, making it ideal for beginners:

Exchanges like Binance or Coinbase: Allow trading with as little as $10–$20.

Leverage Trading: Requires at least $50–$100 but is riskier due to crypto volatility.

Long-term Holding (HODL): Investing a small amount ($50–$100) in Bitcoin or altcoins can be a good start for beginners.

Trading futures and options requires a larger initial investment:

Futures Trading: Typically requires $500–$5,000 due to margin requirements.

Options Trading: Can start with $200–$500, but certain strategies like spreads may require more capital.

CFDs allow trading with leverage and smaller capital:

Minimum Deposit: Most CFD brokers accept deposits from $50–$200.

Leverage: Can range from 1:10 to 1:100, reducing capital requirements but increasing risk.

If you have limited capital, here are some practical steps to start trading safely:

Choose the Right Market: Consider forex or crypto for lower capital requirements.

Use Demo Accounts: Practice with a demo account before risking real money.

Start with Small Trades: Use fractional shares or micro-lots to minimize risk.

Leverage Carefully: Only use leverage if you fully understand the risks.

Manage Risk Properly: Never risk more than 1-2% of your total capital on a single trade.

Use Commission-Free Brokers: Look for platforms with low or zero trading fees to maximize returns.

The minimum amount needed to start trading varies by market, trading style, and risk tolerance. While forex and crypto allow beginners to start with as little as $10–$50, stock trading and futures require more significant capital. Regardless of the market, proper risk management and education are crucial to long-term success. Start small, learn consistently, and gradually increase your trading capital as you gain experience.

The dollar rose slightly on Monday after U.S. President Donald Trump warned of more tariffs, including on steel and aluminium, while a gauge of global stocks shook off concerns about more duties and advanced.

Speaking to reporters on Air Force One on Sunday, Trump said he would announce on Monday 25% tariffs on all steel and aluminium imports into the U.S., and reveal other reciprocal tariffs soon afterwards.

China's retaliatory tariffs on some U.S. exports take effect on Monday, with no sign as yet of progress towards a new trade arrangement between Beijing and Washington.

The dollar index , which measures the greenback against a basket of currencies, advanced 0.13% to 108.23, with the euro down 0.13% at $1.0312.

"This is still very early days," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The market's sort of just sort of chopping around rather than really directional right now.”

Against the Japanese yen , the dollar strengthened 0.17% while sterling weakened 0.16% to $1.2386.

The Canadian dollar weakened 0.27% versus the greenback to C$1.43 per dollar and the Mexican peso weakened 0.37% versus the dollar at 20.642 as the greenback retreated from earlier highs.

On Wall Street, U.S. stocks were higher, led by gains in the energy and tech sectors. The S&P 500 materials index rose 0.2%, buoyed by gains of more than 5% in steel companies Nucor and Steel Dynamics.

Shares of McDonald's also climbed to provide support for stocks after the fast-food restaurant reported its quarterly results.

MSCI's gauge of stocks across the globe rose 4.77 points, or 0.55%, to 874.21 and was on track for its fourth gain in the past five session. Europe's STOXX 600 index rose 0.63% to hit an intraday record of 546.34.

Europe's continent-wide STOXX 600 index rose 0.5% after slipping 0.38% on Friday.

Shares of some European steelmakers gained, reversing earlier declines, including Luxembourg-based ArcelorMittal and Germany's Salzgitter.

Some analysts are concerned tariffs could rekindle U.S. inflation pressures, removing flexibility from the Federal Reserve to cut interest rates, a possible outcome which has helped support the U.S. dollar since Trump's re-election.

Markets are largely expecting the Fed to hold rates steady at its March meeting, with expectations for a cut of at least 25 basis points not climbing above 50% until June, according to CME's FedWatch Tool.

Morgan Stanley chief U.S. economist Michael Gapen said in a note to clients the recent imposition of tariffs raised the bar for rate cuts and the firm only expects a single cut this year, to come at the June meeting.

Fed Chair Jerome Powell is due to speak on Tuesday for the semiannual monetary policy testimony before the Senate Banking, Housing and Urban Affairs Committee. His comments on tariffs and inflation are likely to be closely monitored.

The yield on benchmark U.S. 10-year notes fell 1.8 basis points to 4.469% in the wake of comments from Trump on Sunday that his administration may look into Treasury debt payments for signs of fraud.

Oil prices rebounded despite lingering fears over a potential global trade war. U.S. crude rose 1.49% to $72.06 a barrel and Brent rose to $75.64 per barrel, up 1.29% on the day.

Donald Trump's plan to slap fresh tariffs on the European Union could provoke retaliation in an unexpected way - not by taxing American goods, but by taking aim at the dominance of US tech firms in Europe's digital economy.

The idea, outlined in a Goldman Sachs report released Monday, suggests that rather than responding with tit-for-tat duties on US exports, Brussels could exploit its growing trade deficit in services. By restricting American digital services, the EU could hit a sector that generates billions in revenue from European markets.

Trump vowed last Friday to impose "reciprocal tariffs" as soon as this week, fuelling fears of a renewed transatlantic trade war.

Goldman Sachs economists Giovanni Pierdomenico and Filippo Taddei said that they now expect expect the US to increase duties on European car exports by 25 percentage points and introduce a 10% tariff on a broad set of critical imports, ranging from metals and minerals to pharmaceuticals.

This move, they estimate, could impact EU exports worth €190 billion, or about 40% of the bloc's total shipments to the US.

If tariffs are imposed, Goldman Sachs predicts the EU's response will resemble the strategy it used in 2018, when Trump first targeted European steel and aluminium. At the time, Brussels retaliated with duties on key US products - including bourbon whiskey and motorcycles - covering about 40% of the affected EU exports.

A second round of tariffs was prepared but never implemented, pending a World Trade Organization ruling.

This time, the EU is likely to tread cautiously once again.

"We expect the EU to favour a de-escalation of trade tensions as much as possible and resort to strong retaliation only as a last resort", economists said.

Unlike in 2018, however, the EU now has an additional tool at its disposal: the Anti-Coercion Instrument (ACI), a mechanism designed to counter economic pressure from third countries.

The ACI, which grants Brussels the authority to impose tariffs and restrict access to European markets in response to coercive trade measures, could provide a framework for action against Washington.

One area that could come under scrutiny is the digital economy. While the EU enjoys a significant trade surplus in goods with the US, it runs an annual trade deficit of nearly €150bn in services - half the size of its goods surplus.

A major factor in this imbalance is the dominance of American tech companies. These firms generate substantial revenues from European customers and repatriate earnings as royalties through low-tax jurisdictions like Ireland.

Goldman Sachs economists suggest that targeting this sector could be a way for Brussels to push back without resorting to a tit-for-tat tariff war on physical goods.

"Services imported by the EU from the US span different sectors, including the financial sector, but the lion's share are IT services that are then invoiced as royalties channelled to the US from Ireland", Goldman Sachs said, adding that any restrictions on these transactions could have a meaningful impact on the services trade balance.

Unlike traditional tariffs, which can be imposed quickly, any measures under the ACI would require approval from at least 15 of the EU's 27 member states, a process that could slow Europe's response.

For now, Europe is watching Trump's next move closely. If he follows through with his promise of new tariffs, Brussels will have to decide between direct retaliation on American goods or a more strategic approach - one that could put the US tech sector in the crosshairs of a trade war it has largely avoided until now.

In Denmark, inflation data for January is released. January data is always extra exciting because many businesses only adjust prices at the turn of the year. Sales also increases uncertainty. Particularly fuel prices have increased due to higher energy fees but also higher oil prices. Even so, we expect a decline in annual inflation to 1.5% from 1.9% in December, driven by particularly electricity, as a big increase in tariffs and fees in January 2024 exits the inflation measure.

In Norway, January inflation figures are always extra uncertain. This is the time when most administrative prices are regulated, and the effects can be large in some years. In addition, there can be large variations in the price offers in the January sale. Prices normally drop in January, but as prices were unchanged last year, we expect that the annual growth in core inflation slowed to 2.6% in January, in line with Norges Bank’s forecast from the December MPR. The high inflation figures from Sweden for January obviously imply a certain upside risk for the Norwegian figures, because there are some similar seasonal and administrative factors in January as in Norway.

In Sweden, the figures for industrial orders and monthly household consumption for December are being released. We anticipate some improvement in the household consumption figures, as December’s retail sales and the latest consumer confidence surveys have been encouraging.

For the remainder of the week, the key data release will be the US January CPI, while US politics will also remain in focus. Attention in the US will also be on Fed Chair Powell’s congressional testimony on Wednesday and US retail sales on Friday. In China, focus will be on whether a call between Xi Jinping and Trump, cancelled last week due to China’s retaliation to Trump’s 10% tariffs, will take place. In the euro area, data releases are limited, but Q4 employment data on Friday will be a highlight. On Friday the Munich Security Conference begins, where the war in Ukraine and possible peace talks will be in focus.

In the US, the labour market report was to the strong side again. The establishment survey showed nonfarm payrolls for January grew by 143k SA, close to our forecast of +150k (cons. +170k), while data for the past two months was revised up by 100k. Average hourly earnings growth accelerated to 0.5% m/m SA, but this largely reflected a drop in average hours worked.

The household survey was heavily distorted by updated population controls, which boosted labour force and household employment estimates by 2.2m. This effect is purely statistical and has no market impact. The unemployment rate declined to 4.0% (from 4.1%), but as it is based on the household survey, it is difficult to gauge if this really reflects the labour market re-tightening. The annual benchmark revisions to NFP data from April 2023 to March 2024 was -598k, slightly less negative than the preliminary estimate suggested (-818k). Overall, nothing in the report is particularly hawkish or dovish for the markets, when you look past all the possible distortions.

Consumer sentiment fell from 71.1 in January to 67.8 in February. Notably 1y inflation expectations ticked higher to 4.3% from 3.3%, while 5y expectations were largely unchanged. While Republican respondents were much more optimistic about the future back in November and December, it seems that now both Democrats and Republicans have become much more concerned with the negative consequences of tariffs. However, Chicago Fed President Goolsbee (dovish and non-voting member) did not express new worries about inflation, repeating that the US is on its path back to 2% inflation.

Turning to the geopolitical front, Trump has reportedly spoken with Putin during the weekend about ending the war in Ukraine. Putin has indicated he is willing to discuss a Ukraine peace deal but rules out making any territorial concessions.

On Sunday, U.S. President Donald Trump announced plans to introduce new 25% tariffs on all steel and aluminium imports, on top of existing duties. These tariffs, along with reciprocal tariffs to match other countries’ rates, are set to be announced today.

In the euro area, the most discussed piece on ECB staff updates on r* was published on 7 February. While the piece emphasised do and don’ts of using the estimates for real time monetary policy decisions, it underlines that the broad range of estimates can be summarized as neutral rate being in the range of 1.75% to 2.25% in nominal terms.

In Germany, industrial production numbers were weak again in December, with production declining 2.4% m/m, leaving total Q4 production 0.9% lower than in Q3. The decline was especially due to the automotive industry and capital goods. Hence, the problems in the German industry are not over and we expect to see a continued decline in production the coming quarters. Yet, rebounding manufacturing PMIs in January gives a small ray of light in combination with the outlook for further rate cuts from the ECB, which should stabilize the industry from the second half of this year.

In Norway, manufacturing production increased 3.2% m/m in December, which seems to be a shift in the negative trend seen since last summer. Hence, manufacturing activity was down 0.8% in Q4 and will act as a headwind to GDP (due this week).

In China, CPI was stronger than expected showing a rise in the headline inflation from 0.1% y/y to 0.5% y/y (consensus 0.4% y/y) lifted by an increase in core inflation increased from 0.4% y/y to 0.6% y/y. Holiday spending from the Chinese New Year likely contributed to the increase. It is positive that inflation moved higher and further away from deflation territory, but overall price pressures are still low in China. Producer prices showed a decline again being unchanged at -2.3% y/y.

Equities: Equities were generally lower on Friday, ending just off worst levels (MSCI World -0.7%). It was a bit of a reversal of the risk appetite from the prior session, with all sectors lower and the VIX rising. Europe outperformed US, with US big tech being the notable laggard. The usual drivers were in play: yields edging higher due to a double whammy of rising wage inflation and household inflation expectations were coupled with disappointing guidance from Amazon (currency related) on top of massive capex plans. However, it was not a full risk-off session, as banks and industrials held up relatively well. Equity markets are not startled by Trump’s steel tariffs, with US futures higher this morning and Hong Kong gaining a full 1.7%. We do not know details yet (such as exceptions). However, tariffs tend to gain Nordic producers which are local US producers in a net importer market and benefitted when tariffs were introduced the last time.

FI: Global rates sold off with a knee-jerk reaction on the US labour market report on Friday, despite the headline print of 143k new jobs in January was consensus. 10y UST rose 5bp on the announcement and stayed there for the rest of the trading session. For policy signals, Friday’s print is difficult given the statistical uncertainties and revisions as per usual with the January print. Initially the US reaction took 10y Bund higher, albeit that reversed during the afternoon, thus with 10y Bunds ending the day broadly unchanged. Markets price 85bp worth of ECB rate cuts until year end. BundASW tightened into -3bp, a new low.

FX: Trump’s new weekend pledge to impose tariffs on all steel and aluminium imports is hurting commodity currencies such as AUD and CAD. There might be even more to come this week, as Trump has threatened to unveil reciprocal tariffs on “everyone”. EUR/USD is starting the week’s trading in the low 1.03’s whereas Scandies are close to Friday’s closing levels again, following a temporary overnight sell-off. The ZAR suffers as the US has frozen all aid to South Africa.

Forex trading, the act of buying and selling currency pairs in the global foreign exchange market, is often marketed as a pathway to financial freedom. Many traders dream of making vast amounts of money through forex, inspired by stories of successful investors who turned small capital into fortunes. But can forex trading truly make you rich, or is it just a high-risk endeavor with unrealistic expectations? This article explores the realities of forex trading, including its profitability, risks, and strategies for success.

Forex trading offers several advantages that make it an attractive venture for traders seeking wealth:

High Liquidity: The forex market is the largest financial market in the world, with over $6 trillion traded daily.

Leverage: Brokers provide leverage, allowing traders to control larger positions with smaller capital investments.

24/5 Market Access: Unlike stock markets, forex operates continuously from Monday to Friday, offering flexibility.

Profit from Both Rising and Falling Markets: Traders can buy or sell currency pairs, capitalizing on price movements in any direction.

These factors create the possibility of significant profits, but they also introduce substantial risks.

While forex trading has the potential to generate wealth, it comes with considerable risks, including:

High Volatility: Currency prices can change rapidly, leading to large gains or losses in minutes.

Leverage Dangers: While leverage can amplify profits, it can also magnify losses, wiping out accounts quickly.

Psychological Challenges: Trading requires discipline, patience, and emotional control to avoid impulsive decisions.

Lack of Guaranteed Returns: Unlike traditional investments, forex trading does not guarantee consistent profits.

Some traders have made significant profits in forex trading, often through years of experience, extensive knowledge, and strict discipline. However, statistics show that a large percentage of retail forex traders lose money due to poor risk management, lack of experience, and unrealistic expectations.

Professional traders and hedge funds use advanced strategies, algorithms, and risk management techniques to navigate the market profitably. Individual traders who achieve long-term success often invest in continuous education and adapt to market changes.

While forex trading is risky, several strategies can help improve your chances of making money:

A well-defined trading plan includes entry and exit strategies, risk management rules, and position-sizing techniques.

Successful traders prioritize capital preservation by implementing risk management strategies such as:

Setting Stop-Loss Orders: Automatically closing losing trades before they become unmanageable.

Using Proper Position Sizing: Avoiding over-leveraging and ensuring losses remain manageable.

Avoiding Emotional Trading: Sticking to a strategy instead of making impulsive decisions.

Continuous learning through courses, books, and mentorship can significantly improve trading skills. Practicing on demo accounts before transitioning to live trading also helps in gaining experience without financial risk.

A trustworthy broker with fair spreads, strong regulation, and quality execution can make a significant difference in trading success.

Instead of aiming for quick riches, successful traders focus on consistent, sustainable returns over time.

Yes, forex trading can make you rich, but only for those who approach it with knowledge, patience, and discipline. The forex market is not a guaranteed money-making machine, and most retail traders lose money due to poor risk management and lack of experience. While a few traders do achieve substantial profits, success requires a long-term commitment to learning, strategic planning, and strict discipline.

If you are willing to put in the effort, develop a robust trading strategy, and manage risks effectively, forex trading can be a profitable venture. However, it is essential to have realistic expectations and avoid the common pitfalls that lead to financial losses.