Psychology for major markets January 20th

EUR/USD – Holding close to 1.03 with the focus now shifting to the potential for Trump to make waves with executive orders this week. Lack of action from Trump would likely mean EUR/USD higher.

USD/JPY – Softened helped by hawkish comments from BoJ governor Ueda but needs a BoJ rate hike this week to sustain JPY strength.

EUR/GBP – Still biased higher as UK data weakens and market remains concerned at UK fiscal position. Increasingly looks likely to rise whether UK yields fall or not.

AUD/USD – Made new post-pandemic lows near 0.61 on general USD strength and risk aversion, but has bounced strongly and looks good long term value near current levels unless risk aversion increases significantly

Equities – S&P 500 recovering as yields edge lower. Focus now on Trump’s initial executive orders after today’s inauguration