Psychology for major markets June 19
Vance cancels trip for Iran talks
EUR/USD – The Euro fell further past the 1.149 area support on strong USD buying triggered by hawkish FOMC, now exuberated by worries on U.S.-Iran deal integrity. With uncertainty ahead, EUR/USD could fast test 1.135 area.
USD/JPY – USD/JPY is slowly grinding higher as the hawkish FOMC and BoJ hike neutralize each other. While the up move seems more likely, it should be reminded that we are in intervention zone and we have already heard some jawboning.
AUD/USD – The Aussie retested the 0.7030 technical area and fell. Soft performance in precious metal and risk asset seems to be sinking the Aussie.
Equities & Others – U.S. equites turned lower on market worries. The Geneva talks are cancelled as Iran focus on Lebanon ceasefire. Looks like a volatilte weekend again.