Psychology for major markets Nov 7
USD steady near recent highs after modest dip
EUR/USD – Recovering modestly after a dip into the 1.14s with some concerns about some private US labour market surveys undermining the USD. Tone is now quite neutral.
USD/JPY – USD/JPY held at key resistance area of 154.40 and backed off helped by equity market dip but not backing off significantly. EUR/JPY also off all time highs on equity correction but still very elevated.
EUR/GBP – EUR/GBP held below recent highs of the year at 0.8830 after BoE decision, but risks look to be on the upside with market still only pricing a 60% chance of a December BoE easing.
AUD/USD – AUD/USD has slipped back on general USD strength post-FOMC and some softening in equity prices, and has moved to the bottom half of the 0.64-0.67 range that has held for most of the year, but still looks rangebound.
Equities – S&P 500 slipping back from all time highs helped by some weaker labour market surveys. Correction is so far quite modest and further dip possible given high valuations and a slightly less dovish Fed view.