Psychology for major markets Feb 9
Early Mood Led by Japan's Election
EUR/USD – The Euro recouped partial losses from last week as USD began the week on a soft start. The pair looks set to retest resistance around the figure.
USD/JPY – LDP received a landslide victory. Market participants initially got spooked by potentially more spending, sentiment calmed somewhat as Takaichi suggests she will not opt for debt issuance for food tax cut. Short end yields are climbing while the further end moderates. Intervention threats will be keeping a lid on USD/JPY but more JPY strength has to come from policy that fits the eye of market confidence.
EUR/GBP – Euro gained the upper hand after the ECB meeting while sterling seems to be lagging behind after BoE.
AUD/USD – Little changed for the day. Early optimism fades along correcting metal and U.S. equities strong opening.
Equities – Risk asset had a good opening but has since retraced earlier gains. There has not been new triggers as market participants turn their attention to the next NFP report.