Psychology for major markets Mar 15
USD firmer after Thursday's data - next week's central bank meetings in focus
EUR/USD – EUR/USD dipped below 1.09 on general USD strength after Thursday’s data, but looks likely to hold close to 1.09 into next week’s FOMC.
USD/JPY – USD/JPY pressing higher on general USD strength and positive risk sentiment, despite increasing expectations of BoJ tightening ahead of next week's meeting.
EUR/GBP- EUR/GBP supported near 0.85, with softer UK labour market data supporting an upside bias, but more dovish tone from the BoE needed to generate upside progress.
AUD/USD – AUD holding near 0.66 supported by generally softer USD tone and resilient equity markets, although regional weakness creating some negative sentiment. Potential for renewed gains if China sentiment shows some improvement
EUR/CHF – CHF risks still on the downside as SNB remain one of the more dovish central banks, valuation is very elevated and risks sentiment is positive.
Equities – US markets remaining close to all time highs helped by strong corporate earnings, but vulnerable to a decline in easing expectations after next week’s FOMC.