Psychology for major markets Oct 03

EUR/USD – Back in the 1.17-1.18 range with the EUR gaining only slightly from the US government shutdown and weaker ADP data

USD/JPY – USD/JPY slipped lower helped by a decline in US yields on a weaker ADP report and concerns about the government shutdown, but less hawkish Ueda has allowed a modest rise. Still essentially in a 146-149 range

EUR/GBP – Holding below the year’s high of 0.8763 but upside risks still dominate, especially if risk sentiment turns negative.

AUD/USD – Maintaining mild uptrend since April, with slightly less dovish RBA supportive, but vulnerable if there is a significant downturn in risk sentiment.

Equities – S&P still making new all time highs helped by dip in US yields but extended valuations mean risks are on the downside.