Published: 2023-12-21T18:42:15.000Z
Psychology for major markets 22 Dec

Senior Economist , North America
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USD softer after Q3 core PCE prices revised lower.
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.