Psychology for major markets April 11th

EUR/USD – Still gaining as equities weaken. The correlation with yield spreads now looks broken, with the USD generally falling with equities

USD/JPY – Continuing to decline as equities fall. JPY slightly underperforming the EUR and CHF in latest USD downmove, but this is likely temporary.

EUR/GBP – Holding recent gains reflecting GBP’s relatively riskier status despite strong UK GDP data

AUD/USD – Held above pandemic lows near 0.60 and has rallied strongly on general USD weakness, but vulnerable to the US-China trade war.

Equities – Some stabilisation after initial bloodbath on US tariff increases as larger reciprocal tariffs have been paused. But high US valuations still suggest scope for further declines longer term if tariffs cause significant US growth slowdown