Psychology for major markets April 3rd

EUR/USD – Up above 1.10 after the US announcement of major tariff increases. Global equities and yields are both sharply lower with the US worst hit, and the USD suffering from perceptions of damage to the US economy.

USD/JPY – Sharply lower on big decline in global equities with te JPY acting as a relative safe haven.

EUR/GBP – Mildly firmer as the USD declines reflecting GBP’s slightly more USD like characteristics.

AUD/USD – Moving above 0.6350 to its highest for 2 weeks as USD weakness outweighs weakness in global risk sentiment

Equities – Bloodbath on US tariff increases, led by US indices. High US valuations suggest scope for further declines.