EURUSD floated around 1.1109, shrugging off a better-than-expected survey of German business morale. The U.S. House has impeached President Trump. The Senate is likely to acquit Trump of all charges. The German economy is showing signs of bottoming out, and this could limit losses in euros. Here is the EURUSD Fundamental Analysis of 19 December, 2019.
19 December, 2019 | AtoZ Markets – President Donald Trump was impeached from office by the United States House of Representatives Wednesday evening for abuse of power. The House also approved a second charge that Trump obstructed a Congressional investigation.
The dollar came under pressure after the impeachment. EURUSD rebounded from the ascending 10-day moving average at 1.11112 and is currently trading at 1.1130, a gain of 0.15% on the day.
EURUSD Fundamental Analysis – 19 December 2019
The greenback’s losses have moderate and could reverse in Europe. The Senate, which is controlled by the Republican Party of Trump, is likely to acquit all charges. The chances of Trump leaving office are also slim. However, the Senate trial is scheduled to start in January.
Investigations by the IFO institute on the current situation and future expectations published on Wednesday showed an increase in sentiment. In particular, the Expectations Index went from 92.1 to 93.8, which is higher than the estimate of 93.1. With the German economy showing signs of bottoming out and entering the new year with more confidence, traders may be less inclined to sell the euro.
The U.S. dollar fell in Asia on Thursday after the U.S. House of Representatives voted to remove Republican President Donald Trump for abuse of power and obstruction of Congress.
Trump is the third president of impeachment from office in U.S. history but is likely to survive a GOP-led Senate trial scheduled to vote in January.
The US dollar index fell 0.1% to 96.925 at 11:30 p.m. ET (03:30 GMT). As for the data, the National Association of Realtors will also report on sales of existing homes for November tomorrow.
US Unemployment Data
Sales of existing homes dropped 0.2% last month to an annual rate of 5.44 million. Initial unemployment claims are also due. Economists expect the number of unemployment benefit claims for the first time to drop to 225,000.
Meanwhile, the Philadelphia Federal Reserve will release its manufacturing index for December the same day. Economists expect the Philadelphia Fed index to be 8 for the month from 10.4 in November. However, the index tracks manufacturing in Pennsylvania, New Jersey and Delaware.
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