Hi, i just wanna ask why during Trump’s tweet, USD become weak? and safe heaven currencies like JPY and Gold become stronger? I cant relate why this happens.
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Because; only the Trump’s tweet doesn’t control the value of USD!
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Fundamental trading is more challenging; besides; don’t focus on Trump’s tweet! So many tweets in everyday; start chart reading (maybe better option for you).
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Trump is waging a trade war with China, using tariffs as weapons. This is bad for trade for both parties and represents a risk for US and foreign investors with money in US equities - these must be bought using USD. So a safer place for money right now is JPY or CHF.
Where the big banks decide to put money is not just about how much profit they can make, its also about how much risk they are subject to and how much they could lose.
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@Mizan.rentaka
Investors and humans in general love certainty.
So any economic news that makes the world more certain/confident then non-safe-heaven assets will rise. Examples are below;
S&P500
EM Currencies
USD
OIL
So any economic news that makes the world less certain or confident then safe-heaven assets will rise.Examples are below;
GOLD
JPY
US BONDS(price not yield)
So when news breaks you have to digest, how investors will react and because of this what assets will investors rush into?
I will be releasing a YouTube video in the near future explaining why money flows into certain assets.
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Thanks for the info