Psychology for major markets Feb 11
USD Lower Before NFP
EUR/USD – The Euro is consolidating recent gains around the 1.19 figure. It is unlikely to move away at least after the U.S. NFP later in the day.
USD/JPY – USD/JPY's correction is gaining further traction. However, given it is a Japanese holiday, the move lower maybe over done. The pair is quickly approaching 153 figure, along with previous moderation in yields, suggest market's cocnern for Takaichi fiscal irresponsibility eases.
EUR/GBP – Minor movement so far, as both Euro and Sterling are range bounded.
AUD/USD – The Aussie is gaining strongly on more upbeat risk and precious metal. The pair remain supported in a medium term from hawkish RBA.
Equities – Risk asset is calm before the U.S. NFP but the mood overall seems positive with Japanese equities leading. Precious metals are making minor gains.