Psychology for major markets May 11
No Fireworks Over the Weekend
EUR/USD – The Euro opened lower on strong USD demand. Over the weekend, the anticipated break through did not materialize and instead looks like a fall out between U.S. and Iran. The Euro looks set for a retest around the 1.17 figure for support.
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 but the haven bids will be pushing the pair higher. Right now, the pair is consolidating around the 157 handle.
AUD/USD – Caught in the middle of no where the Aussie lacks direction. After opening lower, the pair managed to recoup partial losses but further rally will likely depends on risk asset performance and precious metal, which is unlikely to be strong with geopolitical uncertainty.
Equities & Others – Broader risk atmosphere is sour as U.S.-Iran exchanges verbal fire. Market participants are already front running the positive outcome and could see a complete reversal if they are left disappointed.