Psychology for major markets Feb 26
Major Market Rangebound Before U.S.-Iran Talks
EUR/USD – The Euro is trading within limited range on Thursday. The rangebound market was created by less positioning before the all important U.S.-Iran trade talk, which will shape the atmosphere in the coming days.
USD/JPY – BoJ's Ueda left some hawkish remark in a local newspaper interview and has been supporting the JPY. He highlighted the possibility of a hike in March/April if the spring wage negotiation yields stronger wage growth. It countered the sentiment brewed by Takaichi's yellow light towards more rate hike.
EUR/GBP – The pair recovered all losses on Wednesday but not much follow through so far.
AUD/USD – The Aussie is against latest correlation of metal and risk asset. It looks like a temporary vacuum for market participants are careful not to be wrongfooted on this risk proxy.
Equities – Broader risk atmosphere is undecided. The spotlight remain between U.S. and Iran. Subsequent geopolitical tension will shake/make the market.