US President Donald Trump’s prolific use of Twitter is leading to wild swings in the prices of stocks, bonds and currencies and has spawned an entirely new field of financial market research.
“Best January for the DOW in over 30 years. We have, by far, the strongest economy in the world!,” Trump tweeted in early February this year. “The advent of Twitter as the President’s direct communication channel on market related policy has driven a shift in market behaviour as traders have begun to pay attention to the platform,” Sukrita Chatterji, FX strategist at Citibank, said in a note released last week. “We suspect this represents the new ‘normal’ moving forward.”
In a separate report, Sukrita Chatterji at Citibank found that while trade still dominates Trump’s Twitter feed, the focus of the president has shifted in recent years to commentary on the Fed and exchange rates.
Scutty President, day trader and market manipulator all in one.
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