Psychology for major markets June 10th

EUR/USD – Testing 1.08 after strong non-farm payroll but sustained break may require a hawkish FOMC, which may require US CPI to deliver more strong data. .

USD/JPY – Initial focus on the FOMC but risk that Friday's BoJ meeting could squeeze JPY shorts if a 10bps rate hike is delivered.

EUR/GBP – Slippage below 0.85 could be extended if April UK GDP corrects lower on Wednesday.

AUD/USD – Under pressure after strong US employment data but caution likely ahead of US CPI and FOMC.

EUR/CHF – Shied away from a test of parity with heavy short positions suggesting downside risk.

Equities – Fragile but if CPI avoids an upside shock Powell is unlikely to sound hawkish enough to trigger a major sell-off.