Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar took the news that U.S. Donald J. Trump became the third U.S. President to ever be impeached by the U.S. Congress in stride. In other headlines, the Australian dollar found support after solid labor data.
The British pound remains on the back foot thanks to renewed worries of a hard Brexit from the European Union. The GBP/USD currency exchange rate was last trading at 1.3083. The pound has shed almost two percent over the last 48 hours.
Forex traders trading the U.S. currency were fairly calm after the U.S. House of Representatives voted to impeach Trump. The vote was along party lines and the articles of impeachment now heads to the Senate for trial. This matter is likely to be dismissed and Trump is very unlikely to be removed from office.
The dollar index, which measures the greenback against six other Forex units, was trading steady around 97.40. This is near a one week high of 97.475 set on Wednesday.
The AUD/USD currency exchange rate rose to an intraday high, during the Asian trade session, at 0.6883. The Australian currency was boosted by solid labor data that could delay the Reserve Bank of Australia from cutting rates in the near term.
Dollar Traders Ignore Impeachment and Focus on the Bank of England and Brexit
Even though the Congress has impeached President Trump, the articles of impeachment are likely to be thrown out by the Republican controlled Senate. This means that the odds of Trump being removed from office are low. With that said, Trump has been charged with obstructing Congress.
At noon GMT, the monetary policy and rate decision from the Bank of England is scheduled. The Bank of England is likely to keep their official bank rate at 0.75 percent. Traders are expecting this vote to come in at 7-2. Only two MPC members will for a rate cut.
The BOE is also focusing on the recent financial market turmoil caused by Prime Minister Boris Johnson. The British Prime Minister wants the United Kingdom to complete its exit from the European Union by the end of 2020.
This is worrying currency traders that the United Kingdom and the European Union will not have enough time to negotiate a new free trade agreement.
