Psychology for major markets October 15th

EUR/USD – USD remains firm but with limited momentum despite firm CPI and more cautious Waller tone failed to make ground after stronger than expected CPI, though biased given below 109. Focus on ECB meeting.

USD/JPY – JPY under pressure with UST yields still firm but 150 tough to break with yield spreads still suggesting current levels are too high.

EUR/GBP – GBP softened after Bailey comments suggesting more significant easing but EUR/GBP still struggling above 0.84. Labor market data gave GBP some support but CPI data is key.

AUD/USD – Off the highs as USD gained after the employment report with some scepticism about the impact of Chinese stimulus, but remains well supported helped by better Chinese equity tone and relatively hawkish RBA.

Equities – S&P 500 may be toppy with US yields still firm despite solid growth data with valuations stretched.