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Why Currency Traders Should Follow Trump Tweets
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Loading...When Donald Trump moves the foreign-exchange market with 140 characters or less, currency traders ought to jump on for the ride.
That’s the conclusion of a Deutsche Bank AG examination of how the president’s comments on Twitter affect the value of the U.S. dollar versus the yen, which is seen as the most responsive to potential changes in U.S. policy because of its perceived safe-haven status.
The president’s proclivity for tweeting -- and the ensuing jolts of volatility to largely placid markets - have been a boon for currency traders.
And @realDonaldTrump proclamations that spark a move of at least 25 pips in the currency pair over the next hour have seen that trend continue in the immediate future.
“Of those tweets, all have seen moves extend over a four-hour period and in none have moves been reversed over a 12-hour period,” Oliver Harvey, a London-based macro strategist at Deutsche Bank, wrote in a report Tuesday.
Source: Bloomberg
Junior Trader Stefan Panteleev
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