Psychology for major markets August 30th

EUR/USD – Breaking back below 1.11 on softer than expected CPI data. But yield spreads are unlikely to move far so some consolidation likely.

USD/JPY – USD/JPY back above 145 with core PCE prices not seen as soft enough for a 50bps Fed easing but non-farm payrolls will be the crucial test.

EUR/GBP – EUR/GBP continued to edge lower after BoE Bailey suggested no Sep cut.  Sentiment remains GBP positive.

AUD/USD – AUD testing the top of the year’s range. May need more positive China sentiment to break higher.

Equities – Powell helps equities, but Nvidia forward guidance puts the brakes on gains