Psychology for major markets April 28th

EUR/USD – Remains well supported on expectations of damage to the US from tariffs, but quieter conditions may allow some modest USD recovery ahead of US GDP and employment data this week.

USD/JPY – Tested September 2024 lows on Trump attack on Powell and breakdown in US/Japan trade talks, but has bounced as Powell seems secure. But upside looks very limited above 144.

EUR/GBP – GBP continuing to recover ground lost to the EUR on tariff concerns, with relatively hawkish BoE policy seen as a positive.

AUD/USD – Broke above key 0.64 level but has so far failed to build on gains. Clear break could open the way for progress into the high 0.60s.

Equities – Some stabilisation after initial bloodbath on US tariff increases but high US valuations still suggest scope for further declines longer term if tariffs cause significant US growth slowdown