In Forex, the Euro has taken off against the economic data that pointed otherwise. The UK president resigning in January with a no-Brexit deal has also created an adverse effect on the pound. On Thursday, the dollar rose against the Japanese Yen amidst the rising optimism for the U.S-China trade war deal. However, the momentum is fairly slow. Ahead of Trump’s impeachment, what would this mean for U.S. dollars?
The U.S.-China Trade War Deal
The ongoing U.S- China trade war came to a halt after the two world leaders agreed to resolve a certain part of it. Recently, Trump announced that he and the Chinese President Xi Jinping will officially close the deal. After this, Beijing reported being in close contact with the Washington office for the trade deal signing ceremony.
The positive resonance seems to have given a boost to the U.S dollar. It rose firmly against the Japanese Yen by 0.26%.
Donald Trump’s Impeachment
For the 3rd time in history, a US president has been impeached. Donald Trump was impeached by the House of Representatives who further accused him of obstruction of Congress.
Trump has denied any allegations of impeachment made against him. However, we are not going to discuss and point fingers. The allegations of impeachment have put gold at a much stronger position. The end of the year sees a positive market for gold even with stable economic conditions like the trade war deal.
The Slow Down in Forex-Dollar
While the dollar has gained momentum, it has rather been slow. With the end of the year, the dollar index which measures the greenback (dollar bill) against six major currencies, was 0.49%. The dollar index gains have slowed down. With the dollar index under 1%, the greenback has moved at the smallest pace in the past six years.
The Australian dollar touched its 5-month high with the optimistic news of the U.S.-China trade war deal. The trade optimism has also impacted the dynamics of EURUSD, with the euro rising to 0.61% in a 10-day high. Contrasting the economic data of a weaker euro by the end of 2019, the currency has gained momentum with the weakness in other currencies.
The year 2019 has been filled with uncertainty in the markets. With political tensions of the trade war looming throughout the year, Brexit, protests in a number of parts in the world, the year has come to the same uncertain halt. Some of these economic tensions will be carried forward to the next year. Will the dollar gain resistance against trump’s impeachment or the trade war deal? Or what would be the impact of Brexit deal on economic conditions? Well, 2020 has a lot to answer. We will be waiting.
News provided by RegalX.com