Trump Impeached, Safe-Havens Rally - Forex News by FX Leaders
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Trump Impeached, Safe-Havens Rally

Posted Thursday, December 19, 2019 by
Shain Vernier • 1 min read

The Trump impeachment saga is moving forward as the U.S. House of Representatives has officially voted to impeach. Ultimately, voting fell along partisan lines, with the Democratic majority winning the day. Since the final tally became known Wednesday evening, safe-haven assets have caught a few bids.

At the midpoint of the Wall Street trading day, the leading U.S. equity indices continue to post new all-time highs. Gold is also up by more than $5.00 per ounce and the USD/CHF and USD/JPY are in steep intraday downtrends. Although the price action is a bit counterintuitive, it does suggest that risk is “on,” but institutional players aren’t going “all-in.”

Trump Impeached, Investors Seek Protection

At press time (1:30 PM EST), the USD/CHF is leading the safe-haven charge. Rates are falling rapidly and have broken beneath the 0.9800 psychological level.

USD/CHF, Daily Chart
USD/CHF, Daily Chart

Overview: At this point, there are no concrete daily support levels to look for in the USD/CHF. It is short-or-nothing for the immediate future.

However, it is worth pointing out that pretty much everyone in the market was sure of a Trump impeachment. So, why the action in safe-havens? 

Well, if nothing else, Wednesday’s vote in the U.S. House of Representatives was historic. Trump is only the third POTUS to be formally impeached; and, despite the 92% odds of a Senate acquittal, the way forward is unclear. Today’s headlines suggest that the House may attempt to delay a Senate trial by weeks or even months. If this scenario plays out, the political limbo will drive uncertainty to the markets and even more action to the safe-havens.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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