Trump Speaks in Alamo

President Trump made his first public appearance yesterday since the riots at Capitol Hill last week. Trump was visiting the Texas border town of Alamo and delivered a brief address, along with autographing a section of the border wall under construction there.

Despite coming under heavy criticism for his comments ahead of the riots, which many feel fuelled the violence which left five people dead, and for his lack of response following the riots, Trump was keen to shun taking any blame. The president told the crowd: "I'd like to briefly address the events of last week. Millions of our citizens watched on Wednesday as a mob stormed the Capitol and trashed the halls of government. As I have consistently said throughout my administration, we believe in respecting America's history and traditions, not tearing them down." Specifically addressing the accusation that he helped spur the rioters on via the speech he gave that day, Trump denied these claims, saying: "It's been analyzed and people thought what I said was totally appropriate."

Facing Second Impeachment

During his last week as the 45th president of the united states, Trump is currently facing a second impeachment unless his VP Mike Pence agrees to use the 25th amendment to remove him. Addressing the risks facing him, Trump dismissed the prospect of forceful removal, saying: "The 25th Amendment is of zero risk to me, but will come back to haunt Joe Biden and the Biden administration. As the expression goes, be careful what you wish for."

Risk of Further Violence

There is a great deal of trepidation ahead of Biden’s inauguration event next week with the FBI warning that pro-Trump mobs are attempting to orchestrate further violence in the capital. Members of Congress have reportedly been briefed by lawmakers that up to 4000 armed pro-Trump supporters are planning on heading to Capitol Hill to stop the Democrats from entering. In response, Washington is drafting in up to 10,000 members of the National Guard.

Impeachment Vote Today

The focus now is on impeachment proceedings. There is a vote scheduled in the House of Representatives today to decide whether to impeach Trump. With Democrats holding the majority there and with several leading Republican figures saying they will support the move, the impeachment is likely to be confirmed. With markets now looking ahead to the incoming democrat administration and the prospect of enhanced fiscal stimulus, the Dollar looks likely to continue lower in the near term despite the fluctuations driven by current political uncertainty.

Technical Views

DXY

The dollar continues to trade within the bearish channel which has framed the decline since summer 2020. Price recently found support at the 89.36 level though the recovery has since run into selling pressure at the 90.50 level. While below here, the near term bias is for further losses towards the 88.32 level next.

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