Psychology for major markets Sep 29
USD reversign some recent gains on government shutdown concerns.
EUR/USD – USD slipping back a little helped by concerns about possible government shutdown. Neutral tone likely ahead of employment report, although this will not be released if government shuts.
USD/JPY – USD/JPY slipping lower helped by a decline in US yields. Risks are skewed to the downside but quiet markets will favour mild gains.
EUR/GBP – Holding below the year’s high of 0.8763 with the EUR softening after the weak IFO survey, but upside risks still dominate.
AUD/USD – Fell back after stronger US Q2 GDP revision and some decline in risk sentiment helped by new tariff announcements, but remains in a gentle uptrend.
Equities – S&P remains close to all time highs but extended valuations mean risks are on the downside