Psychology for major markets Feb 17
Risk sour
EUR/USD – The Euro reversed earlier losses as Germany CPI steadies. But mostly it is still flows of USD movement.
USD/JPY – USD/JPY reverted to the low side after a jump on Monday. JGB yields continue to fall after a steady JGB auction, seems to suggest market confidence in Japanese fiscal policies are recovering. Thus, speculative JPY offers are dissipating.
EUR/GBP – The pair turned higher as the Euro is recovering faster than Sterling to begin the London session.
AUD/USD – The Aussie erased earlier losses from sour risk sentiment. The correlation between the Aussie and precious metal remain strong as we see Aussie and Gold moving in a similar manner.
Equities – Broader risk atmosphere is sour on Tuesday, previous metal are also being sold off. Though both managed to recoup partial losses.