President Trump and Democratic leadership in Congress worked together to link $15 billion in relief for Hurricane Harvey to a short-term extension of the status quo – a complete suspension of the borrowing limit. The president went even further by suggesting that Congress should just eliminate the borrowing cap permanently. The U.S. dollar suffered as a result.
The ongoing slide in the dollar isn’t getting much attention in the financial press, but metals investors should not underestimate the significance. The greenback is in trouble in the charts as well as fundamentally. The last time the DXY index touched the current level of 91.33 was in Jan. 2015 – roughly 6 months into the uptrend which ended late last year.
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