Psychology for major markets Apr 27
Iran Proposes Three Stage Negotiation
EUR/USD – The Euro initially gap lower but soon rotate higher after support arounf 1.1690 area holds. However, it is mostly driven by broad sentiment rather than technical/flows.
USD/JPY – USD/JPY has rejected the 160 figure for now. The BoJ meeting later in the week will be critical. We are seeing a 50-50 call between holding and hiking by 25bps but they will likely strike a hawkish tone and support JPY in a short run.
AUD/USD – The Aussie is meeting overhead resistance level around 0.7190 area. Without support from upbeat risk sentiment and precious metal, it will be hard to see further rally.
Equities & Others – Broader risk atmosphere is heavy on the lack of progress. Any headline will likely shift the broad risk sentiment with little forecast to be done.