Psychology for major markets Oct 01

EUR/USD – Back in the 1.17-1.18 range with the EUR gaining little benefit from the US government shutdown.

USD/JPY – USD/JPY slipping lower helped by a decline in US yields and concerns about the government shutdown.  Risks remain skewed to the downside.

EUR/GBP – Holding below the year’s high of 0.8763 but upside risks still dominate, especially if risk sentiment turns negative.

AUD/USD – Maintaining mild uptrend since April, with slightly less dovish RBA supportive, but vulnerable if there is a significant downturn in risk sentiment.

Equities – S&P remains close to all time highs but extended valuations mean risks are on the downside, with a government shutdown potentially a negative.