Psychology for major markets June 20th

EUR/USD – Sentiment and EUR/USD stabilising with France/Germany spreads but hard to see a significant EUR recovery this side of the French election.

USD/JPY – USD/JPY continues to push on significant technical levels above 158, despite there being little obvious trigger for further JPY weakness. Intervention risks rising but action only likely if BoJ sees market as overstretched.

EUR/GBP – Stabilisation in the mid-0.84s as French risks now seen as priced in. Some upside risks on BoE MPC statement as very little downside risks for rates priced for August.

AUD/USD – More hawkish RBA statement than expected providing support, with some further upside scope if market prices out rate cut expectations.

EUR/CHF – Bounce from the lows below 0.95 on SNB rate cut and potential for further action via both rates and FX intervention. Upside now favoured, but gains are unlikely to be large this side of the French election.

Equities – More new highs seen in the US but valuations getting stretched.