The White House has issued a statement panning House Speaker Mike Johnson's (R-LA) plan to fund federal government agencies for six months. The GOP package includes a partisan bill requiring Americans to prevent citizenship ID when registering to vote that is strongly opposed by Democrats. The White House described the plan as, "wasting time with extreme policies and a potentially harmful long-term continuing resolution (CR)."
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Trend conditions in USDCAD remain bullish and recent gains reinforce this theme. A key resistance at 1.3846, the Apr 16 high, has been cleared. This signals scope for 1.3977, the Oct 13 ‘22 high. Near-term, the pair has pulled back from Monday’s high. A move lower appears to be a correction and is allowing an overbought condition to unwind. The 50-day EMA, at 1.3731, has been pierced. A clear break would expose 1.3657, the Jul 17 low.
EURJPY traded sharply lower Monday marking an extension of the current impulsive bear cycle, before recovering from the session low. The move down opens the next key support at 153.23, the Dec 7 ‘23 low. A break of this price point would strengthen a bearish theme. Note that the cross remains in an extreme oversold position. A stronger recovery would allow this to unwind. Initial resistance is seen at 161.59, the Aug 2 high.