Psychology for major markets March 24th

EUR/USD – EUR/USD stabilising in the mid 1.08s after recent dip helped by some optimism on tariffs and Ukraine.

USD/JPY – USD/JPY testing the 150 area in more risk positive environment, but yield spreads still pointing substantially lower.

EUR/GBP – EUR/GBP dipped back below 0.84 following the BoE MPC meeting, with the market seeing the BoE stance as cautious, but downside looks very limited unless data improves.

AUD/USD – Tested the year’s high near 0.64 as Asian equities rose but has fallen back as risk sentiment has declined. Still scope for a break higher if US yields don’t rise and equities stabilise.

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns. European markets benefiting from expectations of increased defence spending and hopes of an end to the Ukraine war, but worries around tariffs and geopolitics remain.