Psychology for major markets Dec 23

EUR/USD – EUR/USD continue to perform strongly closer to Christmas and is fast approaching last Tuesday's high at 1.1804. But the strength seems to be derived from USD weakness.

USD/JPY – The pair is facing more verbal intervention from multiple Japanese officials. The escalation of language has seen post BoJ rally mostly wiped out. This will likely put a lid on any rally for now and whether JPY will continue to weakens are depending on market participants' realization of reality of higher rates and yield but more likely triggered by another turn in equity.

EUR/GBP – EUR/GBP gap lower on a stronger Sterling opening. The gap was once closed but as session progress we are back to square one.

AUD/USD – AUD/USD is steadily gaining on more positive risk atmosphere and have shot past 0.6670 resistance.

Equities – Major equity indexes taking an early Christmas break. With sentiment pointing north, the gains are minimal.