Thursday, March 10, 2016

Did Donald Trump just cause a ferocious rally in the euro, smacking down Draghi and the ECB?

Earlier this morning the ECB put through a surprise rate cut, moving its main rate from 0.05% to 0.00% and it also moved its bank deposit rate further negative to -0,4% from -0.3%.

This sparked an immediately selloff in the euro.

I sent out a tweet immediatley after that happened, telling people to buy the euro!

Donald Trump was giving an interview on CNBC at the time and he was asked about the ECB rate cut and he said this:

Trump told CNBC that such devaluations were driving manufacturing and other jobs outside of the United States.
"We just sit back and do nothing," Trump said. "That's getting to be very dangerous as far as I'm concerned."

The euro rallied 300 pips in minutes.

Nice trade!

And to those who say Donald Trump has no experience, he's a buffoon, he's not presidential, well, he's been influencing policy without lifting a finger. #DraghiSmackdown.

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