Psychology for major markets May 25
Optimism Building
EUR/USD – The Euro opened higher but lack momentum for further rally. The movement is more USD weakness than Euro strength. The next stop for rally could see resistance at 1.17 area.
USD/JPY – The moderation of JGB yields have put a lid on USD/JPY, still the extra debt has raised market participants' concern on Japanese fiscal picture and will drag the JPY in a medium run. USD/JPY opened lower and are still below Friday's close. The broader USD weakness is lower the potential USD/JPY challenging 160.
AUD/USD – The Aussie is supported by strong precious metal and risk performance. The pair could see a quick challenge of resistance around 0.7190.
Equities & Others – Market participants are frontrunning a potential deal again as we see bids in equity rise over the weekend headline. Always with a grain of salt, we don't think such is sustainable until we see the deal agreed by both sides.