Psychology for major markets July 22
Iran says it struck US military facilities in Jordan and Bahrain
EUR/USD – EUR/USD found some breathing space above the 1.14 figure but that room is running short. Middle East tension is back on with London session progressing. More headlines are coming that Iran is striking back at U.S. military base.
USD/JPY – USD/JPY has refreshed another historic high above 163. It triggered BoJ officials' remark on increasing rate faster than a six month interval. Market participants maybe anticipating an October hike but that maybe a stretch if energy cost push inflation continue to be the major factor of inflationary pressure.
AUD/USD – The Aussie backed away from 0.7030 resistance area as market sentiment turn sour throughout Tuesday. The initial support from precious metal is being outlasted by poor risk asset performance.
Equities & Others – Broader risk are sour on rising escalation between U.S.-Iran. The deal reviving optimism is fading as both sides exchanging missiles with new target.