Psychology for major markets February 26th

EUR/USD – EUR/USD trying to break above 1.05 helped by a more negative reading of the US economy after recent data and some hopes of a Ukraine peace dividend.

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, and tariff concerns continue to be a drag.

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