Psychology for major markets February 25th

EUR/USD – EUR/USD broke above 1.05 on the German election result but has slipped back with a weaker than expected IFO survey. The 1.04-1.05 range looks hard to break near term.

USD/JPY – USD/JPY still pushing lower as US yields drop back and JGB yields hold near 15 year highs, helped by some less positive equity sentiment on tariff concerns and some softer US data, but significant support area below 149 limiting USD/JPY downside

EUR/GBP – EUR/GBP broke below 0.83 after better than expected UK employment data and higher than expected CPI but GBP looks a little expensive here without some more positive news to justify gains.

AUD/USD – Broke higher as optimism that tariffs won’t be too negative for global growth boosted Asian equities. Still looking attractive on a yield spread basis as long as risk sentiment is resilient, but resistance at 0.64 is strong.

Equities – Proving resilient as both higher yields and tariff concerns have been shaken off, with hopes of Ukraine peace deal seen as positive. But high US valuations continue to be a barrier to further gains