Psychology for major markets September 30th

EUR/USD – EUR sentiment resilient despite lower inflation data which has increased market expectations of an October ECB rate cut. Top of the range above 1.12 is under pressure.

USD/JPY – Victory for Ishiba in the LDP election has reversed some of the recent JPY weakness as he is seen supporting the Ueda BoJ’s planned tightening cycle, but 140-145 looks like a near term range.

EUR/GBP – Edging up off the lows in corrective move but GBP still showing underlying strength with BoE expected to ease less aggressively than others.

AUD/USD – Better risk sentiment, particularly in Chinese equities, supporting a move to new highs for the year, but better China sentiment may not last so upside scope may prove modest.

Equities – New highs in S&P 500 but valuations looking stretched with yields also higher