Psychology for major markets Sep 23
USD still mostly rangebound, GBP soft
EUR/USD – EUR/USD edging above 1.18 helped by marginally better than expected Eurozone PMI, but underlying tone is neutral.
USD/JPY – USD/JPY broke the low end of the range seen since July at 146 after the FOMC but has quickly rebounded and JPY remains weak on the crosses as equities remain firm.
EUR/GBP – Testing the top of the year’s range after higher than expected UK public deficit numbers and weak UK PMI data – risks remain to the upside.
AUD/USD – Slipped a little lower after weaker than expected employment data but remains well supported as long as the environment remains risk positive.
Equities – S&P continues to hit new all time highs, but downside scope for yields now very limited and valuation is very extended.