Psychology for major markets Mar 25
Consolidating the uncertainty
EUR/USD – The Euro slides on the continual of geopolitical uncertainty. The magnitude of volatility is compressed for now as there is little sign of further escalation.
USD/JPY – USD/JPY is still approaching 160. However, rising yield and market participants' may further rotate towards JPY when the USD lost its favor of haven.
EUR/GBP – Little changed as the market's spotlight isn't here. Overall in consolidation.
AUD/USD – The Aussie fell on cooling February CPI. However, we are wary of reading too much into market sentiment as it is only 0.1% lower y/y than January.
Equities & Others – Broader risk atmosphere is still shaky as the back and forth rhetoric from Trump and Iran is hard for confidence being built in the market.