Psychology for major markets Jun 05

EUR/USD – EUR/USD holding close to 1.14 ahead of expected ECB rate cut. Lower ECB forecasts for growth and inflation may limit upside despite some indication of a pause to easing.

USD/JPY – JPY benefiting from general USD weakness, but break below 140 likely to require significant turn lower in risk sentiment.

EUR/GBP – GBP still firm but failing to hold levels below 0.84, which may prove a longer term base.

AUD/USD – Extending gains above 0.65 as US yields slip lower and equities remain well supported.

Equities – S&P looking stretched near 6000 as some significant negative tariff impact still likely, but lower yields limiting downside for now.