Psychology for major markets March 19th

EUR/USD – EUR/USD slipping lower as risk appetite dip on Turkish concerns, but holding near 1.09. Yields have also moved lower suggesting risks are now on the downside.

USD/JPY – USD/JPY tested the 150 area but likely to find strong resistance there with yield spreads still pointing substantially lower.

EUR/GBP – EUR/GBP slightly above 0.84 but fairly steady ahead of BoE meeting this week

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

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns. European markets benefiting from expectations of increased defence spending and hopes of an end to the Ukraine war, but worries around tariffs remain.