More on that Wall Street Journal story that triggered to US dollar sell off (big time!)

I posted yesterday on the Wall Street Journal story leaking details of Trump’s ‘day one’ agenda, noting that he wasn’t going to implement tariffs:

• Leaks around Trump’s ‘day one’ executive orders have not mentioned tariffs at all

While I urged caution, noting that Trump can be mercurial and volatile with policy announcements (that’s what’s Twitter is for after all!) I put a 75 – 80% probability that it’d be a ‘no tariff implemented’ day. That proved to be a good call. For traders, it meant a bid behind ‘risk’ and an offer for the USD.

And that’s what played out.

Here is the USD index since Monday morning my time (Sunday evening US time when the Journal carried the story).

ForexLive kicks off the week on Sunday afternoon US time, and its days like this that make it all worthwhile. I hope traders out there got some pips from this. Kudos to the WSJ for the report.

How Trump’s day played out – he blabbed about tariffs but did nothing, as we expected and foreshadowed:

• Trump to lay out trade vision but won’t impose tariffs yet – report
• Trump inauguration speech highlights tariffs. US dollar bounces
• Trump official confirms earlier report that he won’t impose Day 1 tariffs

This article was written by Eamonn Sheridan at www.forexlive.com.