Psychology for major markets Feb 12
Risk Positive and USD Lower
EUR/USD – The Euro is retesting the support turn resistance level circa the 1.19 figure. There has been trade headlines between the E.U. and China but such has less impact towards the pair than USD movement.
USD/JPY – USD/JPY's correction is slowing after three red days in a row. However, given it is a Japanese holiday, the move lower maybe over done. The pair has tested 153 figure and is trying to firmly break the level. Along with moderation in yields, suggest market's concern for Takaichi fiscal irresponsibility eases and seems to give JPY more bids.
EUR/GBP – Minor movement so far, as both Euro and Sterling are moving in the same direction.
AUD/USD – The Aussie is consolidating recent gains but hawkish RBA continue to provide medium term support.
Equities – The broader risk move seems positive but not decisive. U.S. major equity indexes are outperforming peers while previous metal a tad lower.