Psychology for major markets December 4th

EUR/USD – Testing the bottom of the recent range as concerns around the French government and budget mount. Some declines likely if the government loses the vote of no confidence, but a lot of the news is now priced in.

USD/JPY – Still looks biased lower medium term but progress likely to be slow ahead of the US employment report at the end of the week.

EUR/GBP – EUR/GBP back below 0.83 on EUR weakness related to uncertainty around French politics and budget, with more downside possible if French government loses vote of no confidence

AUD/USD – AUD/USD slumping after weaker than expected Q3 Australian GDP data. But not clear that data is weak enough to justify a break lower below the year’s low near 0.6350

Equities – S&P 500 remaining resilient despite a mild correction from the post-election rally. Tariff details and Fed stance will be key in the coming weeks