Psychology for major markets October 7th

EUR/USD – USD remains firm after the strong September employment report. Scope to test down to 1.09, or even below if Fed officials suggest rate cuts might pause.

USD/JPY – JPY under pressure as US yields rise but verbal intervention starting suggesting 150 likely to be tough to break.

EUR/GBP – GBP softer after Bailey comments suggesting more significant easing but EUR/GBP still struggling to make ground above 0.84.

AUD/USD – Coming off the highs as USD firms after the employment report, but underlying tone solid as long as Chinese equities hold recent gains.

Equities – S&P 500 may be toppy as US yields rise despite solid growth data with valuations stretched