Psychology for major markets May 13
No update from the geopolitical front
EUR/USD – The Euro continues to rotate lower. Strong USD bid remain the culprit on geopolitical uncertainty. The Euro looks set for a retest around the 1.17 figure for support.
USD/JPY – Rally is gathering steam after the initial impact of intervention fades. The lack of joint intervention between U.S. and Japan suggest any intervention will be quite restrained. While it is very likely for USD/JPY to challenge the 160 handle, they could be meeting intervention there.
AUD/USD – The Aussie is heading nowhere on contradicting risk sentiment and precious metal performance.
Equities & Others – Broader risk atmosphere is mixed as U.S.-Iran geopolitical front lacks update. Market participants are left disappointed and will likely be reflected in risk asset price action soon.