Psychology for major markets October 17th

EUR/USD – USD remains firm but with limited momentum despite firm CPI and more cautious Waller tone, though biased lower towards 1.08 support. Focus on ECB meeting.

USD/JPY – JPY under pressure with UST yields still firm but 150 tough to break with yield spreads still suggesting current levels are too high.

EUR/GBP – GBP softened after weak CPI suggesting more significant easing but EUR/GBP still struggling to advance above 0.84 even though November rate cut now close to fully priced in. 

AUD/USD – Better bid after another strong Australian employment report but still significantly off the recent highs despite better China sentiment. Upside risks dominate.

Equities – S&P 500 may be toppy with US yields still firm despite solid growth data with valuations stretched.