Psychology for major markets July 8
Trump says Memorandum of Understanding with Iran is over
EUR/USD – EUR/USD treads lower on haven USD bids. The renewed Middle East concern will provide a steady bid for the USD, magnitude depends on what Trump is willing to do after announcing ceasefire is over. Euro will be depressed in the mean time, could test 1.1345 area support.
USD/JPY – The pair is charging higher on trong USD bids. Looks likely we will be seeing intervention in a figure or two if the pace persists this week.
AUD/USD – The Aussie remains capped by poor risk sentiment driven by geopolitical tension. Very likely we will be seeing a retest of 0.6830 area support soon.
Equities & Others – Broader risk sentiment is sour on Middle East headlines, the next leg market participants are likely intense crossfire again.