Psychology for major markets Sep 3
Trump Began to Downplay the U.S.-Iran War
EUR/USD – The pair managed to recoup the 1.16 figure. Haven demands for USD has treaded lower on less than expected escalation in the Middle East. If persist, it could see further recovery in EUR/USD.
USD/JPY – Market participants are waiting impatiently for BoJ's confirmation of a September hike. The correction has gained traction on anticipation of the Sep hike from the BoJ. The fast break on Thursday has seen USD/JPY fallen once more the two figures. However, such moves are front running the September move and could be hard to see sustainable fall if there is no fundamental change or significant risk aversion.
AUD/USD – The Aussie is little changed with little support from risk. The push from precious metal seems to be insufficient to break the 0.7190 technical area for now.
Equities & Others – Broader risk sentiment is undecided, patiently waiting for the next leg.