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Why Currency Traders Should Literally Follow Trump Tweets

  • Deutsche Bank finds Trump tweets have ‘low’ impact on FX
  • When tweets do have an effect, moves continue for four hours
Bloomberg business news

Twitter's Noto Says Trump Tweets Put Company in Spotlight

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, causing transaction volumes to soar in some instances.