Psychology for major markets Sep 8
USD softer after employment report, JPY weaker after Ishiba resignation
EUR/USD – EUR/USD breaking to the top side of the 1.16-1.17 range, but with little momentum following the weaker than expected US employment report. Upside still favoured but any gains likely to be slow
USD/JPY – JPY remains generally weak despite stronger Japanese wage data and lower US yields with PM Ishiba’s resignation triggering latest decline. But JPY still has substantial upside potential.
EUR/GBP – Concerns about UK public finances continue to undermine GBP confidence, but 0.87 remains hard to break.
AUD/USD – Pushing towards the top end of the 0.64-0.66 range.
Equities – S&P hit another new all time high after US employment data led to lower US yields, but downside risks mounting as weaker data unlikely to benefit equities from here on.