Psychology for major markets June 11
Iran maintains that Strait of Hormuz is closed until further notice
EUR/USD – The Euro is unchanged after the initial rebound from support around 1.1490 area. The Middle East situation deteriorates and reveal any Euro rally lacks fundamental drive.
USD/JPY – USD/JPY is slowly grinding above the 160 figure. We are yet to hear any jawboning as the latest rally is event driven. However, another rally of a figure and two shall be met with some kind of intervention.
AUD/USD – The Aussie stayed below support around 0.7030 area and is little changed for the day. It is understandable given the current risk atmosphere and precious metal performance. The next major support is pretty far away around 0.6830 area but cannot rule out a quick test if risk aversion spirals.
Equities & Others – Major equites are staging a rebound for now. But it is hard to justify with the lack of any progress in the Middle East.