Psychology for major markets Aug 14

EUR/USD – EUR/USD easing back below 1.17 with the September Fed cut now fully priced in. Picture looking more rangy until we see some significant economic news

USD/JPY – USD/JPY slipping lower as Bessent calls for BoJ tightening, but equity strength continues to limit scope for JPY gains on crosses.

EUR/GBP – GBP supported by better than expected GDP data with support at 0.86 under pressure.

AUD/USD – Found support above key 0.64 area and holding in mid range near 0.65 after fairly neutral employment data, but downside risks increasing with RBA cuts looking more likely and equities looking more fragile.

Equities – S&P recovered from the post-employment lows to make new all time highs, but downside risks persist if more evidence of US slowdown emerges, with impact of tariffs still to come.