Psychology for major markets 22 Dec

EUR/USD – 1.10 could be cleared if November core PCE prices come in soft adding to the impact of Q3's revisions, though weakness in Eurozone economy may ensure limited follow through.

USD/JPY – USD/JPY gains after the BoJ left policy and guidance unchanged are fading, and recent lows could be tested if US data comes in soft. 

EUR/GBP – EUR/GBP higher after weak UK CPI, support now seen at .86 though selling expected ahead of .87. 

AUD/USD – Resistance at .68 and .6820 but a combination of soft US data and stronger equities could be enough to bring a break higher.

Equities – Gains leave the market vulnerable to any strength in core PCE prices, though we feel that data is more likely to continue coming in supportive.