Psychology for major markets December 6th

EUR/USD – Finding support near 1.05 with the fall of the French government not seen as immediately significant. Two way risk on US employment data, but underlying picture still fragile.

USD/JPY – Still looks biased lower medium term but some fading of BoJ rate hike expectations limits short term downside.

EUR/GBP – EUR/GBP back below 0.83 but fairly steady for now. If ECB just cuts 25bps in December risks may be marginally on the upside.

AUD/USD – AUD/USD slumped after weaker than expected Q3 Australian GDP data and the year’s low below 0.6350 in under threat. However, long term value remains and recovery may be seen if China sentiment improves.

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 assuming solid employment report.