Psychology for major markets Aug 4

EUR/USD – EUR/USD steady in mid-1.15 with implications of weaker US employment data and softer equities unclear for EUR/USD.

USD/JPY – USD/JPY maintaining a modestly softer tone after the dip on the US employment numbers. Potential for further declines if US equities weaken further.

EUR/GBP – Hovering near 0.87 with weaker equity tone GBP negative but yield spreads still looking mildly supportive.

AUD/USD – Holding above key 0.64 area after dip last week but downside risks increasing with RBA cuts looking more likely and equities looking more fragile.

Equities – S&P futures steady after Friday’s sharp losses, but downside risks dominate as evidence of US slowdown emerges, with impact of tariffs still to come.