Psychology for major markets May 5
Iran parliament speaker says US has jeopardised shipping security through Strait of Hormuz
EUR/USD – The Euro is still battling around the support circa 1.17 figure. Geopolitical tension remain centerstage as it affects the bids and offers of USD.
USD/JPY – Mutliple rounds of intervention seems to bbe keeping a lid on USD/JPY. But that is the maximum unless more joint intervention with the U.S. are done. It is hard to tell but any rally will likely retest the 161 figure.
AUD/USD – The Aussie was beaten down despite the RBA hiking 25bps as forward guidance seems to suggest they are done for now. Overhead resistance is just half a figure away but it would require significant push from the broader risk sentiment.
Equities & Others – Broader risk atmosphere improves but still lack fundamental drive. Market participants do not seem to bother the possibility of re-escalation after Project Freedom.