Psychology for major markets November 12th

EUR/USD – EUR/USD remains under pressure as markets look towards increases in US tariffs on Europe. EUR/USD lowest since April and scope to test the year’s low at 1.06.

USD/JPY – USD/JPY remains firm in line with general USD strength, and downside now looks more limited with Fed expected to be less dovish in response to Trump policies. But still hard to see sustained gains above 155.

EUR/GBP – GBP staying firm against the EUR hitting a new post 2022 low helped by a more hawkish BoE tone and expectation that the UK will suffer less than the Eurozone from Trump policies. Downside still favoured but GBP/USD unlikely to be immune to USD strength.

AUD/USD – AUD/USD bounced strongly after the post-election dip and is still finding support on the 0.65 handle but remains vulnerable if Chinese equities suffer from Trump tariff polices.

Equities – S&P 500 continuing to make news highs post-election. But while tax cuts are seen as positive, tariff increases are not and at current valuations upside looks very limited.