Psychology for major markets June 2
Is the deal here yet
EUR/USD – The Euro is recovering partial Monday losses. It seems to be more a USD story than concern on Eurozone inflationary pressure. All things aside, everyone is waiting for deal progress in the Middle East before positioning. The pair is currently capped by support/resistance area around 1.17 figure.
USD/JPY – USD/JPY is gathering steam for a charge towards 160. Without intervention or a change in winds, we may see a subsequent rally for a figure or two.
AUD/USD – The Aussie is back to test the support/resistance area around 0.7190. However, sustainable rally depends on equity and metal performance.
Equities & Others – Market participants are restraining aggressive positioning and remain hopeful while waiting for a deal.