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Donald Trump Literature Reviews

How Trump’s Twitter Use Impact Forex Capital Markets

How Trump’s Twitter Use Impact Forex Capital Markets

Forex Capital Markets. (2017, August 23). How does President Trump’s Twitter use impact forex, markets and stocks? Retrieved from https://www.fxcm.com/insights/president-trumps-twitter-impact-forex-markets-stocks/

This article explains how Twitter has become a valuable communications platform for politicians who wish to engage their constituents directly on issues of policy and other hot topics. Ranked as the fourth-largest social media network, Twitter’s popularity makes it a medium of choice for most political leaders. In particular, President Donald Trump is immensely fond of this platform as opposed to the traditional communication media, especially when addressing the public. Trump boasts a massive 21.8 million followers on Twitter. Hence, it is clear that his usage of Twitter can have a substantial impact on forex, government contractors, and stock markets. For instance, Trump’s tweet regarding Toyota’s business activities in 2017 caused the company to experience a sharp decline in its stock prices in less than five minutes after the tweet. The market cap loses for the company amounted to 1.2 billion. This article illustrate that Trump’s use of Twitter can cause short-term destabilization of corporate stock prices and foreign currencies.

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