Psychology for major markets May 8
The U.S.-Iran Ceasefire being Tested
EUR/USD – The Euro is retracing partial Thursday's losses. The pair is benefiting from broad USD weakness and will likely be swinging over the weekend headlines.
USD/JPY – The latest round of intervention from MoF has put a lid on USD/JPY. There hasn't been significant rebound in the pair as per previous intervention as it coincides with broader risk mood improvement that weakens the USD.
AUD/USD – Still borrowing some support from broader risk sentiment and solid precious metal. AUD/USD bounced from 0.7190 technical area and looks set to test the next resistance at 0.7331.
Equities & Others – Broader risk atmosphere improves weirdly as U.S.-Iran exchanges fire. Market participants are already front running the positive outcome and could see a complete reversal if they are left disappointed.