Psychology for major markets January 17th

EUR/USD – Holding close to 1.03 with the focus now shifting to the potential for Trump to make waves next week. Lack of action from Trump would likely mean EUR/USD higher.

USD/JPY – Softened helped by hawkish comments from BoJ governor Ueda but needs a BoJ rate hike next week to sustain JPY strength.

EUR/GBP – Still biased higher as UK data weakens and market remains concerned at UK fiscal position. Increasingly looks likely to rise whether UK yields fall or not.

AUD/USD – Made new post-pandemic lows near 0.61 on general USD strength and risk aversion, but has bounced strongly and looks good long term value near current levels unless risk aversion increases significantly

Equities – S&P 500 recovering as yields edge lower. Focus now on Trump’s initial executive orders after next week’s inauguration