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Despite stronger-than-expected University of Michigan sentiment data, stocks have slid to new session lows while yields have climbed to new session highs. Notably, U.S. bonds appear to be decoupling from the typical flight-to-safety flows often observed during periods of geopolitical tension.
The NASDAQ index is under pressure and edging closer to its rising 100-hour moving average, currently at 19,349.45. The recent low touched 19,425.68, with the index last trading at 19,431—down 231.2 points or 1.18% on the day.
The S&P index remains a fair distance above its rising 100-hour moving average, currently at 5953.64. So far today, the index has reached a low of 5983.83 and is last trading at 5986.81, down 0.96% on the session.
In the currency markets, the USD initially climbed in a typical Pavlovian response to geopolitical tensions but has since reversed lower during the U.S. session. The EURUSD is now trading at 1.1538, rebounding from a session low near 1.1488. The pair briefly dipped below the high from June 5 at 1.14935, and approached its rising 100-hour moving average, currently at 1.14775, before bouncing back.
The USDJPY is off its high at 144.48 and looks to test its 200 hour moving average at 144.048.
This article was written by Greg Michalowski at www.forexlive.com.
