Currencies
Snippet from July 20, 2017 Pivotal Events
A headline in “The Week” says a lot: “The Most Unproductive Congress in 164 Years”. This is a Leftist site, but the observation could be valid. A majority in Parliament in England or Canada would have provided more consistent support for the leader who won a critical election. The situation compares to Reagan when his reform faced a hostile Democratic majority. It seems that the Republican Party needs to be reformed before the administration can fully attend to corrupt bureaucracies.
Swamp-dwellers, on all sides, will fight any change. Indeed, hostility to reform is global.
Realization of systemic obstruction has been extending the decline in the US dollar.
This is well after some technical excesses were registered.
On the break below 95.5, we noted (June 28) that the next level of support was at the 92 to 93 level. Also, we thought that the Weekly RSI could provide support towards 30. It is now down to 32.
The Canadian dollar has continued up to 79.5. There is resistance at the 80 level and the Weekly RSI is a little over 70, which compares with 71 reached with the high at 106 in 2011. Industrial commodities could continue firm into August, supporting the C$.