Psychology for major markets Jan 23
USD under broad based pressure, if currently led by USD/JPY.
EUR/USD – Supported by Greenland relief and weaker USD sentiment generally, though faces resistance in the 1.18 to 1.1815 zone.
USD/JPY – Sense that the Japanese authorities have drawn a line at 160 should keep JPY supported while USD is fragile, though weak JPY fundamentals persist.
EUR/GBP – Moderately improved tone of recent UK data, notably Services PMI, has EUR/GBP approaching the lower end of its recent range.
AUD/USD – Strong rally drawing close to .69 though critical resistance at .6942 will be tough ahead of CPI data on Wednesday.
Equities – S&P 500 has reversed most of its losses over the Greenland issue making further gains tougher given high valuation ahead of Wednesday's FOMC.