Psychology for major markets June 25
Israel has pulled back from part of its buffer zone in southern Lebanon
EUR/USD – EUR/USD found some support circa 1.1345 area and staged a small bounce. There is chance for another leg higher if risk sentiment improves.
USD/JPY – The pair continue to consolidate. Hawkish Fed are being met with hawkish BoJ summary of opinion, shifting market expectation for the BoJ. Yet, we take that will a pint of salt as political headwinds cannot be neglected. The threat of looming intervention could also be a reason for somewhat less weakness in the JPY.
AUD/USD – On way traffic since the break of support circa 0.7030. The Aussie is being doubled teamed by poor precious metal, risk asset and strong USD. The next support sits at 0.6827.
Equities & Others – Major equities are undecided and waiting for the mext trigger.