Psychology for major markets August 1st

EUR/USD – EUR/USD dipping below 1.08 as the USD manages some general gains following the FOMC, but the tone is still broadly neutral

USD/JPY – USD/JPY continuing to press the downside as yield spreads continue to move in the JPY’s favour.

EUR/GBP – GBP edging lower ahead of the MPC meeting with most expecting a 25bp rate cut.

AUD/USD – AUD under pressure after weaker than expected CPI, but remains well confined to the 0.64-0.68 range suggesting scope for a return to 0.66.

Equities – Stabilising after losses over the last couple of weeks.