Psychology for major markets Nov 28
EUR a little softer within the range
EUR/USD – EUR/USD edging down within the range as latest data shows some softness, but remains well confined to the 1.14-1.18 range.
USD/JPY – USD/JPY correcting from 9 month highs helped by more aggressive verbal intervention and a dip in equity markets, but JPY remains in a downtrend and is likely to remain under pressure if risk appetite remains strong.
EUR/GBP – EUR/GBP slipped lower after the UK Budget which proved less contractionary than expected and seemed to restore some confidence in the public finances. However, the relief may prove short lived with GBP risks still mainly to the downside.
AUD/USD – AUD/USD continues to rally after the dip onto the 0.64 handle with yield spreads very supportive and risk appetite recovering. Upside favoured but still vulnerable to any decline in risk sentiment.
Equities – S&P 500 slide halted by increased hopes of Fed easing with Ukraine peace hopes also seen as a potential positive, but upside now more limited near recent all time highs.