Psychology for major markets May 29
Still waiting the deal to be signed
EUR/USD – The Euro continues to chop around as haven USD bids weigh on the currency. While it looks we are the closest to a deal, nothing is really agreed until we see in in black and white.
USD/JPY – JGB yields are back to consolidation mode and hard to see further changes without either Middle East deal or BoJ's indication of slowing their pace of tapering. The pair has nibbled away previous intervention effort and looks set to retest the 160 figure. We have already heard some verbal intervention from Japanese official Kihara, indicating the rally won't be easy.
AUD/USD – The Aussie took a breather after Thursday's rally. Aussie traders are waiting for confirmation for a positive outcome in Middle East, to avoid getting wrong footed over the weekend.
Equities & Others – Market participants are restraining aggressive positioning on Friday and is patiently waiting for details. It will not be surprising to see such activity continues throughout the later session as Trump has been known to bring out the headlines over the weekend, which most market participants want no part of it.