Psychology for major markets Aug 5
U.S.-Iran's Rhetoric Remains Confusing
EUR/USD – EUR/USD sails further away from the 1.15 figure as market participants remain hopeful on a peaceful Middle East resolve. We are wary the market has already gone too far from the reality.
USD/JPY – The confirmed joint intervention will be capping future JPY rally. However, without fundamental changes, only multiple rounds of intervention will be keeping the pair down. Right now, the pair is directionless, looking for the next cue.
AUD/USD – The Aussie is retesting the 0.7030 technical area but remain hard to see a sustained rally wiothout fundamental shift in the Middle East.
Equities & Others – Broader risk sentiment are upbeat. Yet, hopium only last as long as there is no negative headlines coming out.