Psychology for major markets June 26
Iran says Strait of Hormuz shipping will be governed by terms of memorandum with Oman
EUR/USD – EUR/USD found some support circa 1.1345 area and staged a small bounce. Sustained rally will require more upbeat risk mood.
USD/JPY – The pair continue to consolidate. Hawkish Fed are being met with hawkish BoJ summary of opinion, shifting market expectation for the BoJ. Yet, we take that will a pint of salt as political headwinds cannot be neglected. The threat of looming intervention could also be a reason for somewhat less weakness in the JPY. The soft USD seems to be helping on Friday.
AUD/USD – On way traffic since the break of support circa 0.7030. The Aussie is still capped by poor risk appetite. The next support sits at 0.6827 but the Aussie looks supported for now.
Equities & Others – Major equities treaded lower after the euphoria of IPO and peace fades.