The EURUSD has experienced a downward rotation due to rising yields, despite weaker ISM data and a ruling in favor of Donald Trump by the US Supreme Court regarding presidential immunity. This has led to a slip in stocks, with former President Trump benefiting from current President Biden’s struggles. The possibility of a Trump victory raises questions about potential tariffs, inflation, and a more dovish Fed Chair. Trump’s desire to lower tax rates may have been effective in the past, but in the current economic climate of higher inflation and a stronger economy, its impact remains to be seen.
On a technical note, the EURUSD price has broken below its 100-bar moving average on the 4-hour chart and is now within a swing area between 1.0719 and 1.07346. If it falls below the swing low, traders will be looking towards the recent bottoms between 1.0665 and 1.06703. The USDJPY, on the other hand, is reaching new highs and moving further away from the rising 100-hour MA at 160.57, with the latest high dating back to 1986 at 161.734.