The Dow Jones Industrial Average closed down -420.22 points on the day, and gold winds up becoming the only major asset performer to close in positive territory for the session. The ten-year Treasury was also moving lower to 2.23%:
Fed Chair Powell garnered most of the attention in today’s TV media but macro markets were influenced by US President Donald Trump and his daily Twitter barrage:
These are some of the administration’s strongest trade comments to date. Will Donald Trump start a trade war?
Forex / US Dollar
Trump’s tweet, however, guided the narrative in an entirely new direction — and the US Dollar suffered as a result.
Of note for forex traders was the release of the quarterly GDP figures in Switzerland, which came in very strongly at 1.9%.
This beat already-high expectations of 1.7% and were much improved relative to the 1.2% gain that was posted during the previous quarter.
The USD/CHF is a currency pair that is often associated with safe haven buying during times of economic uncertainty or volatility in the stock market, so this is a currency pair that could be on the radar for forex options traders for a good portion of this year. After the data was released, the USD/CHF moved to new lows near 0.94.