Summary of USD Movement Post-Supreme Court Decision

The article discusses the recent movement of the U.S. dollar (USD) following a significant Supreme Court ruling. The Supreme Court's decision, which was a 6-3 ruling, struck down the Trump administration's authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs. This ruling has led to a marginal decline in the USD as markets reacted to the removal of tariff-related price pressures.

Market Reactions

In the immediate aftermath of the ruling, the USD experienced a sell-off. However, the market's reaction has been mixed across different asset classes:

• U.S. Yields: U.S. Treasury yields have increased, with the 10-year yield rising approximately 2.3 basis points. This increase is attributed to concerns that the government may need to reimburse tariff revenues, potentially widening the fiscal deficit.
• U.S. Equities: The stock market has shown positive movement, with the Dow Jones Industrial Average up 0.21%, the S&P 500 up 0.30%, and the Nasdaq up 0.40%.

Currency Movements

Focusing on major currency pairs, the article highlights the following movements:

• EUR/USD: The EUR/USD pair has moved higher, trading above the 1.1765–1.1778 swing area, indicating a shift in short-term bias towards buyers. The next target for this pair is the falling 100-hour moving average at approximately 1.1809.
• USD/JPY: The USD/JPY has tested its 100-day moving average at 154.84. After briefly dipping below this level, it rebounded and is currently trading around 155.02. For sellers to gain control, the price needs to remain below the 100-day MA.
• USD/CHF: The USD/CHF has also moved lower, entering a key swing area between 0.77298 and 0.7740. The pair is currently trading near 0.7736, and a sustained move below the 100-hour moving average would strengthen the bearish bias.
• USD/CAD: The USD/CAD has found support at its 100-hour moving average near 1.3667. The pair has been in a consolidation phase, and a break below this moving average would tilt the bias in favor of sellers.

Conclusion

The Supreme Court's decision has had a notable impact on the USD and various asset classes. While the dollar has moved lower, U.S. yields have increased due to fiscal concerns, and equities have shown positive performance. The movements in major currency pairs indicate a complex market reaction, with key technical levels being tested that could influence future trading directions.