EURUSD: consolidation continues under the resistance of 1.1200.
We expect a new attempt to go above 1.1200.
We keep purchases from 1.1035.
The talk of the market: Trump's Impeachment.
As you know, yesterday, December 18, the lower house of the US parliament voted to impeach Trump. This is not surprising, because a) Trump really quite rudely violated the law and ethics, using his official position for personal political purposes. b) It is clear that in the lower house of Congress, it will be very beneficial for the majority of the Democrats in the coming presidential election.
Furthermore, the case of impeachment goes to the upper house which is the Senate where the majority are Republicans. Most experts believe that the Senate will most likely not vote for impeachment since Trump's violation of the law is not so offensive for the Republicans to overthrow their president. However, there are talks that Trump does not suit many conservative Republicans with his radicalism, he is not "the man" for them. And since in the case of impeachment the position of the president passes to the vice president, this may satisfy many.
Now let's take a broader look: Why the US as a state performs impeachment when it seems to violate stability?
Tactically - yes, of course, the stability of the state is declining.
But one must understand that in developed democracies the state is not completely controlled by one person from one cabinet. Unlike authoritarian states, parliament and government in democracies are very strong and independent. And this ensures the stability of the state even if there is no president at all. The government will function and the parliament will pass laws.
Impeachment is needed for feedback "power - citizens." If the people are dissatisfied with the president, the Congress may completely, by law, introduce the issue of impeachment and remove the senior official from the position. The presence of such feedback strengthens the connection between the government and the people and makes the system more flexible and adaptive.
Thus, painful stagnation does not occur, as in authoritarian states, when people are often forced to wait for decades, when a morally obsolete leader is finally replaced by a new one.