Psychology for major markets March 25th

EUR/USD – EUR/USD pushing back above 1.08 as USD strength fades helped by improving IFO survey.

USD/JPY – Retreating slightly after the break of 150 but solid global equity tone limits JPY upside

EUR/GBP – Still edging lower without any obvious support from data. Big picture risks remain on the upside due to low valuation.

AUD/USD – Tested the year’s high near 0.64 as Asian equities rose but has fallen back as risk sentiment has declined. Still scope for a break higher if US yields don’t rise and equities stabilise.

Equities – US market cheered by less aggressive Trump tone on tariffs, but still limited by high valuations. European markets benefiting from expectations of increased defence spending and hopes of an end to the Ukraine war, but worries around tariffs and geopolitics remain.