Psychology for major markets Jan 22

EUR/USD – Renewed gains reinforce support below 1.16, but 1.18 still looks likely to be strong resistance.

USD/JPY – JPY still heavy with equities firmer and EUR/JPY reaching fresh highs. If 158 holds, may see fresh test of the upside..

EUR/GBP – Speculation of a challenge to PM Starmer from Andy Burnham had only a brief impact with recovery in risk sentiment supporting the GBP. 

AUD/USD – AUD was resilient to equity declines on Greenland and is now supported by rebounding equites and strong employment data.

Equities – S&P 500 has reversed most of its losses over the Greenland issue making further gains tougher given high valuation ahead of next week's FOMC.