Psychology for major markets March 13th

EUR/USD – EUR/USD stabilising in the high 1.08s awaiting more tariff news. US equity market weakness remains a drag on the USD

USD/JPY – USD/JPY dipping after recent recovery on hawkish BoJ and softer equities. Downside still favoured

EUR/GBP – EUR/GBP holding close to 0.84 after recent EUR gains. Risks remain to the upside especially if equity markets slip back.

AUD/USD – Held above the main support area below 0.62 and has scope to advance to test 0.64 if risk sentiment stabilises

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns. European markets benefiting from expectations of increased defence spending and hopes of an end to the Ukraine war, but worries around tariffs remain.