Psychology for major markets August 2nd

EUR/USD – EUR/USD tone remains broadly neutral with the focus on the US employment data.

USD/JPY – USD/JPY continuing to press the downside as yield spreads continue to move in the JPY’s favour and risk appetite weakens.

EUR/GBP – GBP pressing the 0.85 level after the BoE rate cut on Thursday. Still upside scope given high GBP valuation, especially if risk sentiment continues to weaken.

AUD/USD – AUD found some support below 0.65 but continues to struggle in a risk negative environment. Even so, upside scope exists if risk stabilises.

Equities – Remaining under pressure with focus on US employment data