Psychology for major markets September 11th

EUR/USD – Bias is for USD losses, unless U.S. data dismiss harder landing fears or fears of European slowdown and weaker equities undermine sentiment.  

USD/JPY – USD/JPY still trading offered and breaking to new lows for the year below 141 on more hawkish BoJ rhetoric, consistent with narrowing yield spreads. Still scope sub-140 especially if risk sentiment remains weak.

EUR/GBP – GBP edging lower after UK GDP data disappoints, but break above 0.8450 would likely require shift of sentiment towards expecting a BoE cut this month.

AUD/USD – Weak commodity prices and soft Chinese data sapping sentiment but underlying fundamentals suggest scope for gains if equities stabilise.

Equities – Better tone at the start of the week and scope for Fed easing suggests downside risks are not substantial without much weaker data