Psychology for major markets June 25th

EUR/USD – EUR/USD steady near 1.07 as French and German yields stabilise ahead of the French election. Focus will be on the politics until the second round of elections on July 7.

USD/JPY – USD/JPY continues to push on towards 160, despite there being little obvious trigger for further JPY weakness. Intervention risks rising but weaker risk sentiment looks necessary to turn the market.

EUR/GBP – Stabilisation in the mid-0.84s as French risks now seen as priced in. More dovish BoE stance limiting downside.

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

EUR/CHF – Heavy CHF short positions suggest further downside risk but some stabilisation likely near 0.95 as French political risks are seen as priced in.

Equities – New high seen in the US as yields dipped but valuations getting stretched.