Psychology for major markets September 25th

EUR/USD – EUR sentiment resilient despite weaker survey data helped by better risk sentiment following China easing. But rising yield spreads limit the upside scope.

USD/JPY – More positive global risk sentiment and BoJ indications of a pause in monetary tightening extending JPY correction lower, but levels above 145 likely to prove hard to achieve.

EUR/GBP – Holding close to the lows of the year on the back of weaker Eurozone surveys, but valuation getting stretched and GBP vulnerable to any weaker UK data

AUD/USD – Better risk sentiment, particularly in Chinese equities, supporting a move to new highs for the year, but better China sentiment may not last so upside scope may prove modest.

Equities – New highs in S&P 500 but valuations looking stretched with yields also higher