Psychology for major markets Aug 28

EUR/USD – EUR/USD back in the mid 1.16s as US yields edge lower. Breaks of the 1.16-1.17 range remain hard to sustain.

USD/JPY – USD/JPY slightly softer a US yields decline, but still stuck in a 146.50-148.50 range.

EUR/GBP – Failed to break below 0.86 but underlying GBP sentiment still mildly positive after recent stronger data as UK rate cut expectations are pared back. 0.86-0.87 range for now, but risks mainly on the downside near term.

AUD/USD – Found support above key 0.64 area once again as USD slipped lower after Powell comments and higher inflation data limited RBA easing expectations. 0.64-0.66 range remains hard to break.

Equities – S&P benefitting from lower yields, but any further yield decline is unlikely without clear economic weakness, suggesting very limited upside for equities.