Psychology for major markets Nov 24

EUR/USD – EUR/USD edging up helped by increased Fed easing expectations after comments from the NY Fed’s Williams and some hopes of a Ukraine peace deal. But remains well confined to the 1.14-1.18 range.

USD/JPY – USD/JPY corrected from 9 month highs helped by more aggressive verbal intervention and a dip in equity markets, but JPY remains in a downtrend and is likely to remain under pressure if risk appetite recovers.

EUR/GBP – EUR/GBP consolidation blow the recent highs awaiting the upcoming Budget on November 26. Risks still look to be on the upside given strong likelihood of a December rate cut if the Budget is tight as expected, while a looser Budget would undermine confidence.

AUD/USD – AUD/USD slipped back with a stronger USD and weaker equities. But there is strong support on a 0.64 handle, and risks are biased upside longer term based on yield spread correlations.

Equities – S&P 500 slide halted by increased hopes of Fed easing with Ukraine peace hopes also seen as a potential positive.