Psychology for major markets June 11th

EUR/USD – Dipping lower after strong non-farm payroll and the announcement of a French election, but a sustained break below 1.08 may require a hawkish FOMC, which may require US CPI to deliver more strong data.

USD/JPY – Initial focus on the US CPI and FOMC but risk that Friday's BoJ meeting could squeeze JPY shorts if the BoJ do more than reduce their JGB buying.

EUR/GBP – Slippage below 0.85 could be reversed if April UK GDP corrects lower on Wednesday.

AUD/USD – Under pressure after strong US employment data but caution likely ahead of US CPI and FOMC.

EUR/CHF – Heavy CHF short positions suggest downside risk especially with political uncertainty growing in Europe after EU elections, but CHF valuation looks high, particularly against the JPY.

Equities – Fragile but if CPI avoids an upside shock Powell is unlikely to sound hawkish enough to trigger a major sell-off.