Psychology for major markets July 1
USD/JPY Weakest in Decades, Again
EUR/USD – EUR/USDcontinue to rotate lower. The latest leg began from not so hawkish ECB and was exacerbated by Middle East uncertainty. If such uncertainty persists, we could see another round of strong USD buying.
USD/JPY – It bust through the 162 level and higher. The pair is refreshing decades high but we are yet from seeing/hearing intervention. The pace of rally is rapid and could see actual intervention if the spike sees follow through in the week.
AUD/USD – The Aussie looks set to test support at 0.6830 area. The lack of strong risk appetite and precious metal is capping the recovery for AUD/USD.
Equities & Others – Major equities are trading individually. The broader market is likely undecided for now, given the back and forth Middle East situation.