Psychology for major markets April 14th

EUR/USD – Still firm but may be topping out near 1.14 as equities stabilise.

USD/JPY – JPY still firm against the USD but slipping a little lower on the crosses as EUR outperforms and risk recovers modestly

EUR/GBP – GBP correcting higher after recent losses as equities edge up. Current EUR/GBP levels now look high relative to yield spreads, but still low from a big picture perspective.

AUD/USD – Held above pandemic lows near 0.60 and has rallied strongly on general USD weakness, but still vulnerable to a renewed equity downturn on the US-China trade war with 0.64 level still the major resistance

Equities – Some stabilisation after initial bloodbath on US tariff increases but high US valuations still suggest scope for further declines longer term if tariffs cause significant US growth slowdown