Psychology for major markets 10 Jan

EUR/USD – EUR/USD holding in the 1.09-1.10 range for now. Focus on the US CPI data on Thursday and any developments on risk sentiment. 
USD/JPY – USD/JPY has been boosted by rising US yields this year, but got overdone near 146 on Friday. Focus on US CPI on Thursday as the main potential driver of yield spreads, but soft Tokyo CPI and labor cash earnings data limit JPY upside scope near term
EUR/GBP – EUR/GBP holding close to 0.86, but looking a little low relative to current yield spreads. With BoE policy already priced to be more hawkish than others, upside risks dominate.
AUD/USD – The 0.6870 high from December looking toppish near term, but still some upside scope against the EUR if risk sentiment stabilises.
USD/CHF – CHF holding strong helped by higher than expected December CPI, but still looks toppish here as SNB turns more dovish and halts FX selling. 
Equities - Payrolls strong but not strong enough to cause alarm. We expect CPI to be acceptably subdued, but the market is vulnerable to an upside surprise.