According to a Reuters article, US President Donald Trump sent fewer social media posts that moved the market since his reelection compared with his first term.
Analysts at the bank found that 10% of the 126 articles he wrote on tariffs and foreign policy, as well as economics policies, had an impact on currency market.
There are fewer market-moving positions, but the activity is increasing
Trump’s posts on economic issues have increased in recent weeks, and there were over 20 last week. This is double the average for January.
This is still well below his peak of 60 per week during the 2018-19 period when he was involved in trade disputes, such as with Mexico.
JPMorgan stated that Trump’s tweets about tariffs were the most influential. Nearly one third of these posts caused market movements.
Trump’s announcement of 25% tariffs against Mexico and Canada earlier in the month had the biggest impact. The Mexican peso dropped by 2% and the Canadian dollar fell by 1%. He then postponed the action two days later.
The posts about China had mixed results. After Trump’s threat to impose tariffs on Fentanyl, the yuan weakened. However, it rebounded by mid-January after he said he had a very good phone call with Chinese president Xi Jinping.
The trading of Trump’s tweets hasn’t proven profitable
JPMorgan backtesting shows that despite the reactions of the markets, trading Trump’s tweets hasn’t proven to be highly profitable.
According to the study, strategies like buying US dollars against a basket G10 currencies with high beta or by the currency that was most affected for the 5 to 180 minute period after each posting resulted into disappointing gains. Gains did not exceed 4% under even optimistic assumptions.
Trump’s latest posts spark controversy
Trump’s tweets may not be able to have a big impact on the markets but they are more than likely to have created controversy.
This was the latest post in which President Bonaparte quoted.
Donald Trump said, “He Who Saves His Country Does Not Violate Any Law,” both on Elon Musk’s X, formerly Twitter, and on Truth Social (his social media platform), on Saturday.
The White House official X Twitter account shared the same message with Trump’s photo.
This phrase has been attributed by many to Napoleon Bonaparte. The French general, who was known as an authoritarian ruler and declared himself Emperor in 1804 is credited with this version.
Democrats and liberal commentators have criticized the remark. Adam Schiff, a California Democrat, responded to the remark on X by saying “Spoken as if you were a dictator.”
On the social media platform Bluesky, New York Times Columnist Jamelle Boie described it as “the most anti-American and constitutionally unconstitutional statements ever made by an American President”.
Some conservatives who are critical of Trump expressed concern. Anthony Scaramucci – who was briefly the White House Communications Director before becoming a vocal critic – reposted Trump’s statement, adding: “Wants be a dictator.” You don’t have to see something in order not to want it.
Post by President Trump: Are his posts moving the markets? The study shows that not much may change as the updates unfold
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