Psychology for major markets October 11th

EUR/USD – USD remains firm but failed to make ground after stronger than expected CPI, partly due to the rise in initial claims. Still biased towards a break below 109 rather than above 1.10.

USD/JPY – JPY under pressure as US yields rise but 150 likely to be tough to break with yield spreads still suggesting current levels are too high.

EUR/GBP – GBP softer after Bailey comments suggesting more significant easing but EUR/GBP still struggling to make ground above 0.84.

AUD/USD – Off the highs as USD gained after the employment report but remains well supported helped by better Chinese equity tone and relatively hawkish RBA.

Equities – S&P 500 may be toppy as US yields rise despite solid growth data with valuations stretched