Psychology for major markets July 13
Bombs keep dropping
EUR/USD – EUR/USD initially opened lower on strong haven USD bids. The wind began to change in early London session when headline break out suggesting Iran negotiators are still mediating with Gulf mediators on the deal. The change of sentiment drive the Euro rebound.
USD/JPY – USD/JPY follows the USD movement broadly but has yet to retest Friday's low. GPIF headlines are back and forth, kept market participants guessing and weakened the JPY bids.
AUD/USD – The Aussie erased earlier losses on imprioviong sentiment. Rally will require a push from Middle East peace which is unlikely in days.
Equities & Others – Broader risk sentiment was poor but showed signs of improvement from talks not completely shutting down. Hard to see a significant improvement with more escalation first.