Psychology for major markets April 23rd

EUR/USD – Retreating from 1.15 as Trump steps back from threat to fire Powell, but remains well supported on expectations of damage to the US from tariffs.

USD/JPY – Tested September 2024 lows on Trump attack on Powell and breakdown in US/Japan trade talks, but bouncing as threat of Powell sacking removed.

EUR/GBP – Fairly steady at higher levels as equities stabilise

AUD/USD – Broke above key 0.64 level but has so far failed to build on gains. Clear break could open the way for progress into the high 0.60s.

Equities – Some stabilisation after initial bloodbath on US tariff increases but high US valuations still suggest scope for further declines longer term if tariffs cause significant US growth slowdown