Trump Supreme Court Tax Ruling Rattles Markets

Posted Thursday, July 9, 2020 by
Shain Vernier • 1 min read

Earlier today, the United States Supreme Court (SCOTUS) ruled that the tax returns of President Trump may be turned over to New York District Attorney Cyrus Vance. In a separate decision, the Supreme Court denied the U.S. House of Representatives access to the same documents. As expected, Trump lit up the ruling on Twitter:

“The Supreme Court sends case back to Lower Court, arguments to continue. This is all a political prosecution. I won the Mueller Witch Hunt, and others, and now I have to keep fighting in a politically corrupt New York. Not fair to this Presidency or Administration!”

Right now, equities investors are taking the SCOTUS ruling as a negative, choosing to ignore this morning positive employment figures. At the midway point of the Wall Street session, the DJIA DOW (-385), S&P 500 SPX (-31), and NASDAQ (-21) are all deep into the red.

SCOTUS, Trump Taxes Have The Markets Rattled

Although this morning’s SCOTUS decision has brought more uncertainty to the marketplace, a rush to safe-havens hasn’t developed. In the case of the USD/JPY, rates are consolidating near the 107.25 quarter-handle.

USD/JPY, Daily Chart

Here are two levels to watch in this market for the near future:

  • Resistance(1): Daily SMA, 107.33
  • Resistance(2): Bollinger MP, 107.36

Overview: It’s important to remember that although NY’s District Attorney’s office will be seeing Trump’s financials, most of the public won’t. And, at this point, it’s unclear how big of a factor today’s Supreme Court decision will be in the coming election. One thing’s for sure ― Trump has had a rough 90 days and is now a solid 6/5 underdog to win a second term.

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