14.11 - how did USD react to public impeachment hearings?
- by Anna K.
Donald Trump’s impeachment is making waves across the globe. Right now we are on a very important stage – a stage of hearings, where the Senate is listening to the testimonies of those close to the Ukraine scandal and decides whether Trump’s offenses are impeachable. It is important because we are reminded that no man in above the law and that democracy has to be protected even if the most important man in the world is threatening it. It is a very noble cause to protect, if you ask me. But. We are interested not in the reasons and causes but in the effect the process has on the markets and on USD particularly.
As you can see investors are barely scared away by the whole ordeal, which is very interesting. I do not think that if this happened in Germany or in Canada, we would see such a growth of national currency there. And I will say why – safe haven status. Yes. This is the thing protecting dollar from plummeting down at this time.
Of course such a growth for the greenback means that all of the major currency couples are falling down, but such is the law of the markets.
Will these hearings influence USD further? Oh, I think they will, but not in the way we thought previously. I think that today is the perfect example of USD behavior in the crisis situation – it is going to grow due safe haven status. Well, that is the most probable scenario.
This interesting and unusual situation calls for trading signals.