USD/PKR Trades below 155 Ahead of Trump Impeachment Vote

USD/PKR was edging up 0.43% to 154.910 in late Asian session on Wednesday.

The announcement of a “phase one” trade deal still supported risk sentiment on Tuesday.

USD/PKR traded mostly below the 155 mark for a second straight day, seemingly ignoring a recent set of upbeat US macro data. Housing starts rose more than anticipated in November to a seasonally adjusted annual rate of 1.365 million units, while building permits rose to their highest level since May 2007 (1.482 million). The numbers suggested US housing sector was regaining momentum following three rate cuts by the Fed in 2019, which kept mortgage rates lower.

Additionally, a Federal Reserve report showed US industrial production had increased at a monthly 1.1% in November, while exceeding expectations, following a revised down drop of 0.9% in October. Output in manufacturing industry, which accounts for 11% of US economy, also surged past estimates, rising at a monthly 1.1% in November.

The data came out a few days after the US Commerce Department reported slower-than-expected retail sales growth in November, in spite of strong labor market, which raised certain concerns over consumer spending and economic growth in Q4.

Meanwhile, Donald Trump may become the third US president to be impeached, when the Democratic-dominated House of Representatives takes a vote on charges related with Trump’s effort to pressure Ukraine to investigate Joe Biden, a Democrat and contender in next year’s presidential election. Trump faces one accusation of power abuse by asking Ukraine to investigate Biden and another charge of obstruction of Congress’ investigation into that very matter.

The House will probably take up impeachment today, which could lead to a vote this week on whether the charges should be approved and the matter – sent to the Republican-dominated Senate.

In other political news, a court in Pakistan sentenced to death yesterday Pervez Musharraf, who came to power in a 1999 coup and then ruled as president, after accusing him of high treason and subversion of the country’s Constitution. The court has analyzed complaints, records; arguments and facts related to the case and have come to a majority verdict. The charges relate to Musharraf’s imposition of a state of emergency, under which all civil liberties, human rights and democratic processes in the country were suspended between November 2007 and February 2008.

The US Dollar Index was up 0.09% to 97.27 in late Asian trade on Wednesday.

From a macroeconomic perspective, no relevant reports are scheduled to be released today. Market focus will likely now shift towards US final GDP, PCE inflation and consumer sentiment data due out at the end of the week.

At 10:15 GMT today FOMC member Lael Brainard is expected to speak on “Monetary Policy, Technology and Globalization” at Colloquium in Honour of Benoît Coeuré in Frankfurt am Main, Germany. Any remarks concerning the Fed’s future policy or US macroeconomic environment would heighten USD volatility. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.