Psychology for major markets Aug 20
Iran foreign minister plays down US president Trump's economic threat
EUR/USD – As per previous EUR/USD commentary, the run is seeing a quick test of the 1.17 figure. The rally maybe stretching too far if there is no more fundamentally changing headlines.
USD/JPY – The joint intervention threat is capping USD/JPY rally. September hike from the BoJ becoming more and more likely, putting pressure on the pair but not enough until the official stamp from the BoJ. After the overnight slump along USD, the pair is recovering partially and quietly waiting for the next leg.
AUD/USD – The Aussie is little changed as the performance of risk asset and precious metal cancelled out each other.
Equities & Others – Broader risk sentiment is undecided yet regional equities are performing better.