Psychology for major markets March 18th

EUR/USD – EUR/USD edging above 1.09 on general USD weakness and mild risk positive sentiment.

USD/JPY – USD/JPY testing the 150 area as risks sentiment improves, helped by heavy long JPY positioning, but likely to find strong resistance there.

EUR/GBP – EUR/GBP slightly above 0.84 but fairly steady ahead of BoE meeting this week

AUD/USD – Testing the year’s high near 0.64 as Asian risk sentiment improves. Scope for a break higher if US yields don’t rise.

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns. European markets benefiting from expectations of increased defence spending and hopes of an end to the Ukraine war, but worries around tariffs remain.