Psychology for major markets October 10th

EUR/USD – USD remains firm after the strong September employment report, edging lower towards 1.09, with scope for a break lower if US CPI data is at or above consensus.

USD/JPY – JPY under pressure as US yields rise but verbal intervention starting suggesting 150 likely to be tough to break.

EUR/GBP – GBP softer after Bailey comments suggesting more significant easing but EUR/GBP still struggling to make ground above 0.84.

AUD/USD – Coming off the highs as USD firms after the employment report but remains well supported helped by better Chinese equity tone and relatively hawkish RBA.

Equities – S&P 500 may be toppy as US yields rise despite solid growth data with valuations stretched