Psychology for major markets March 3rd

EUR/USD – EUR/USD benefiting from equity rally but remains mostly stuck in a 1.04-1.05 range

USD/JPY – USD/JPY pressed back above 150 on a general USD recovery and equity resilience but yield spreads still suggest major downside risks

EUR/GBP – EUR/GBP still edging lower helped by the perception that the UK is less in danger from US tariffs, but GBP is looking expensive.

AUD/USD – Dropping back after failing to break above 0.64 resistance area, but remains attractive if risk sentiment is resilient

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns, but European markets benefiting from expectations of increased defence spending.