Psychology for major markets Mar 21

USD softer after FOMC, CHF weak after SNB rate cut
EUR/USD – USD generally weaker post-FOMC with the Fed somewhat less hawkish than expected. Bias towards further gains towards 1.10 if risk appetite holds up.
USD/JPY – USD/JPY dropping back from the highs after the FOMC, but still up on the week in spite of the BoJ rate hike and a less hawkish than expected Fed, suggesting sentiment remains bullish, though the rationale is elusive.
EUR/GBP- EUR/GBP supported near 0.85, with softer UK labour market data supporting an upside bias, but more dovish tone from the BoE needed to generate upside progress. Long GBP positioning looks extended in CFTC data.
AUD/USD – AUD recovered strongly after the FOMC helped by a strong employment report. Mild upside bias remains but regional sentiment needs to improve to spur sustained gains.
EUR/CHF – CHF fell sharply after the SNB cut rates, and risks remain on the CHF downside, although downside now more limited as other central banks are likely to follow suit in the coming months.
Equities – US markets making new all time highs helped by strong corporate earnings and the more dovish than expected Fed. Sentiment remains positive despite extreme valuations