Michigan survey numbers were much weaker than expected. Despite the sharp declines, the dollar is stable and is trading near its highs against the euro and the pound.
The Michigan poll may lose some steam as politics dominate the election. If you're a Trump supporter, it's dire. If you're a Biden supporter, you're fine.
However, EURUSD is trading well off its low of 1.06668 (USD remains near the high). The price is currently trading at 1.0673.
GBPUSD is now trading below the 200-bar moving average on the 4-hour chart at 1.2668 which increases the bearish bias technically. The price is currently trading at 1.2666. The 38.2% retracement of the upward move comes from the April low at 1.26455 and is the next downside target with further selling. The 100-day moving average is at 1.26387.
On the upside, a return above the 200-bar moving average on the 4-hour chart and a swing zone floor between 1.2675 and 1.2685 gives dip buyers some hope that the bottom is in place.
The US dollar remains near its highs against the New Zealand dollar, Australian dollar and Canadian dollar.
Conversely, the US dollar is nearing its lowest levels against the Japanese yen and Swiss franc as money flows into these two currencies. The Bank of Japan has delayed the bond sale to July (possibly… a Punt). USDJPY initially moved higher after the decision (JPY decline), but has since recovered the entire move higher for the pair.
