Psychology for major markets July 7
Another crude oil tanker reportedly damaged near Oman, around the Strait of Hormuz
EUR/USD – EUR/USD treads lower on haven USD bids. The renewed Middlle East concern will provide a steady bid for the USD until issue resolved. Euro will be depressed in the mean time, could test 1.1345 area support.
USD/JPY – Still hovering around intervention zone. The pace has somewhat moderated, suggesting market participants concern on surprising intervention. Still the easiest path is north.
AUD/USD – The Aussie is facing an uphill battle from soft risk sentiment and precious metal. No technical direction could see headlines dominating flows.
Equities & Others – Broader risk sentiment is sour on Middle East headlines. We do not see imminent escalation risk yet.