US stocks fall as Democrats start Trump impeachment proceedings

US stocks declined while the greenback rose after Democrats announced the official launch of impeaching Donald Trump. In a statement, house speaker, Nancy Pelosi said that the democrats will start impeachment proceedings. This is after the latest episode, where Trump was accused of pressuring Ukraine to investigate Joe Biden and his son. This new episode in American politics means that there will be no major legislation passed in congress. Still, the impeachment proceedings will largely be symbolic because the republican-led senate will likely not remove the president.

The New Zealand dollar rose sharply after the RBNZ delivered its interest rates decision. As was widely expected, the central bank left interest rates unchanged at 1.00%. This decision came a month after the bank delivered a bigger-than-expected 50 basis points cut. Analysts now expect the bank to resume cuts in the November meeting. In the accompanying statement, the bank attributed the new rate cuts to the ongoing trade issues that have affected the global economy. Before the rates decision, the country released trade numbers. These numbers showed that imports increased to $5.69 billion from the previous month’s $5.66 billion. Exports declined to $4.13 billion from the previous $4.96 billion.

Today, traders will receive a series of minor economic data from Europe. From Germany, they will receive the consumer climate data from GFK. This data is expected to show that confidence in October remained unchanged at 9.7. From Switzerland, they will receive the ZEW expectations while from the UK, they will receive the gross mortgage approvals for September. Meanwhile, from the United States, the market will receive new home sales data for August. This number is expected to jump to 660k from the previous 635k. The EIA will also release oil inventories for the past week. The inventories are expected to drop by 249k barrels.


The EUR/USD pair declined in the American session as democrats moved ahead with impeachment proceedings. The pair declined from a high of 1.1023 to the current support of 1.1000. On the hourly chart, this price is slightly below the 14-day and 28-day moving averages. The two EMAs are making a bearish crossover as shown below. This price is between the 23.6% and 38.2% Fibonacci Retracement level. There is a possibility that the pair will continue moving lower today to test the support of 1.0990.


The NZD/USD pair rose after the RBNZ released its interest rates decision. The pair reached a high of 0.6348, which was the highest level since September 18. It was slightly below the 50% Fibonacci Retracement level. On the hourly chart, the pair is trading above the 14-day and 28-day moving averages while the Triple exponential moving average has continued to soar. The pair could continue moving higher today to reach the 0.6375 level, which is the 61.8% Fibonacci Retracement level.


The XAU/USD pair declined from a high of 1535 to the current level of 1530. On the hourly chart, the price is along the middle line of the Bollinger Bands. The momentum indicator remains above the 100 level while the moving average of oscillator has moved below the neutral level. The pair will likely resume the overall upward trend.

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