Forex: The dollar firmed, but the accusations against Trump weigh

The us dollar stabilized Wednesday, but remained on the defensive after the launch of an inquiry of impeachment against the president Donald Trump, which has reinforced the downside risks to markets.

The House of representatives of the United States will launch an investigation to determine whether Trump has asked Ukraine to help defame former us vice-president Joe Biden in the lead for the nomination to the presidency, democratic party of 2020. Trump has denied the claims.

It is unlikely that the investigation will lead to the dismissal of Trump, but this event has added a new uncertainty to the financial markets.

“If a survey seems to put an end to his chances of re-election in 2020, it may wish to exercise caution and strengthen its attitude vis-à-vis a trade agreement with China, increasing the chances of a global recession next year”, said Jeffrey Halley, Senior Market Senior, Asia Pacific, OANDA.

On Tuesday, speaking at the united nations, Trump has criticised more severely the trade, stating that it would not accept a “bad deal” in the trade negotiations for an american-chinese.

The chinese diplomat Wang Yi quickly replied by saying that Beijing would not be threatened in its trade, nor allow interference in its affairs, including Hong Kong, with no intention of “playing the game of the throne on the world stage”.

The dollar rose 0.3% to 107,31 yen at 10.55, after having reached a low of two weeks to 106,96 the previous day.

The swiss franc shelter decreased slightly to 0,9857 franc per dollar, after reaching a peak of nearly three weeks of 0,9845 for a dollar on Tuesday.

The euro, which had been penalized by the weak economic data of the euro area at the beginning of the week, fell slightly by 0.1% to 1,1000, that is closer to the hollow of 1,0966 Monday.

The dollar index, which measures the u.s. currency versus six major currencies, was up 0.2% 98,15.

Data showing that u.s. consumer confidence had fallen sharply in September also weighed on the dollar.

The british pound was down 0.4% at 1.2437 after a sharp rise Tuesday, immediately after the decision of the Supreme Court, according to which a suspension of five weeks of parliament, in the prospect of Brexit was illegal.

The new zealand dollar has increased up to 0,6325 after the reserve Bank of New Zealand has kept interest rates unchanged, as expected.

–Reuters contributed to this report

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