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The U.S. dollar trades as a safe haven following the Trump impeachment inquiry and the last repo operation

USD - United States Dollar

House Speaker Nancy Pelosi announced a formal impeachment inquiry of President Donald Trump. The investigation is around Trump's July phone call with the Ukrainian President. However, it is anticipated that a transcript will be released by the White House later today. The President has reacted, hitting back at Democrats and saying the process is "bad for the country." The risk-off mood of the FX market is due to this situation where the Greenback gains almost 0.4 percent this morning.

The U.S. dollar is also getting a boost from the New York Federal Reserve, which conducted its latest $75 billion overnight repo operation. Chicago Fed President Charles Evans, Kansas City Fed President Esther George, Fed Governor Lael Brainard, and Dallas Fed President Robert Kaplan are all speaking at various events today.

Key Movers

In New Zealand, the RBNZ left its key rate at 1 percent as most of the market participants had expected. The RBNZ said there's scope to ease policy further if necessary amid slowing economic growth and subdued inflation.

However, in Australia, the RBA is set to reduce the key rate further despite that the current Governor of the RBA helped the Aussie dollar for a short period of time with his comments that, "…there remains scope for more fiscal and monetary stimulus, if necessary, to support the economy and maintain our inflation and employment objectives." This morning, the Aussie and Kiwi dollar are getting hammered in a clear risk-off mood after Trump impeachment inquiry.

British Prime Minister Boris Johnson is back in Parliament today, almost three weeks earlier than planned after his decision to close the legislature was overturned by the U.K. Supreme Court yesterday. The Pound versus the Greenback is falling around 1 percent.

Regarding the U.S - China spat, Chinese State Councillor and Foreign Minister Wang Yi said to New York on Tuesday that while his country has no intention of unseating the U.S. as the world leader, China expects America to, "...remove all unreasonable restrictions."

Expected Ranges

USD/CAD: 1.3215 - 1.3301 ▲

EUR/USD: 1.0925 - 1.0995 ▼

GBP/USD: 1.2300 - 1.2425 ▼

AUD/USD: 0.6727 - 0.6772 ▼

NZD/USD: 0.6257 - 0.6300 ▼