Market Reactions to Supreme Court Ruling
After the Supreme Court’s ruling, the US dollar experienced a drop. The 6-3 decision negates the Trump administration’s IEEPA customs authority. This led to a sell-off as markets reacted to reduced tariff-related pressures. However, reactions have varied across different asset classes.
In the US, yields have increased, rising approximately 2.3 basis points for about ten years. This uptick raises concerns that the budget deficit might expand since customs revenue needs to be compensated. On a more positive note, the removal of tariffs is anticipated to alleviate some inflationary pressures.
US stock markets saw gains, with the Dow up 0.21%, the S&P climbing 0.30%, and the Nasdaq advancing 0.40%.
Focusing on major currencies, the euro dollar has risen, trading within the range of 1.1765 to 1.1778. This shift appears to support buyers in the short term. The next significant upward goal will be determined by the 100-hour moving average, which has dropped to about 1.1809. If the pair can break past this threshold after being below it since February 12, it may change the control to bullish.
Regarding the US dollar yen, it dipped to test the 100-day moving average of 154.84, an important benchmark for evaluating short-term trends. Following a breach above this average earlier in the week, it traded mostly in this higher range, with a slight drop just below this moving average. Currently, it’s lingering around 154.81 after the ruling.
For sellers to gain meaningful control, the price must drop below and consistently stay under the 100-day average. Alongside its technical significance, the 50% midpoint of the 2026 trading range, at 154.956, is also a critical point, making it a noteworthy battleground for short-term market sentiment.
In terms of USDCHF, it reversed and fell back to its primary swing area between 0.77298 and 0.7740. The pair hit a low of 0.7730, just above the lower end of this range, and is trading around 0.7736 now.
For sellers to sustain their downward momentum, the next target emerges at the 100-hour moving average near 0.77225 and the 200-hour moving average at 0.77042. A move below both of these levels could strengthen bearish sentiment.
Interestingly, the 38.2% retracement of the 2026 trading range, at 0.7769, capped the upside earlier. The session saw attempts to rally above this retracement level, which are crucial for rebuilding buyer confidence. However, prior efforts to surpass this point in late January and early February did not hold up, indicating a potential struggle ahead.
Lastly, in the case of USDCAD, it has seen a decline but remains supported at current levels. The 100-hour moving average stands at around 1.3667. The pair briefly surged above this moving average but fell back into a consolidation phase after reaching an all-time high of 1.3715 on February 12.
During the last couple of days, the pair surpassed the 50% midpoint of the 2026 trading range, but failed to maintain those gains. The recent lows reached around 1.3667, and today, it’s been focused on that important 100-hour moving average, which now acts as a key support level. A break below it could shift the short-term bias to favor sellers.
