Psychology for major markets Oct 02
USD/JPY staying soft on government shutdown concerns and weak ADP, helped by some hawkish BoJ comments
EUR/USD – Back in the 1.17-1.18 range with the EUR gaining only slightly from the US government shutdown and weaker ADP data
USD/JPY – USD/JPY slipping lower helped by a decline in US yields on a weaker ADP report, concerns about the government shutdown and some mildly hawkish BoJ comments. Risks remain skewed to the downside.
EUR/GBP – Holding below the year’s high of 0.8763 but upside risks still dominate, especially if risk sentiment turns negative.
AUD/USD – Maintaining mild uptrend since April, with slightly less dovish RBA supportive, but vulnerable if there is a significant downturn in risk sentiment.
Equities – S&P still making new all time highs helped by dip in US yields but extended valuations mean risks are on the downside.