Psychology for major markets November 14th

EUR/USD – EUR/USD remains under pressure as markets look towards increases in US tariffs on Europe. EUR/USD has hit another new low for the year at 1.0509 and has scope to extend below1.05.

USD/JPY – USD/JPY remains firm in line with general USD strength, and downside now looks more limited with Fed expected to be less dovish in response to Trump policies. But still hard to see sustained gains above 155, with Japanese authorities opposing further gains.

EUR/GBP – GBP staying firm against the EUR helped by a more hawkish BoE tone and expectation that the UK will suffer less than the Eurozone from Trump policies. Downside still favoured but GBP/USD unlikely to be immune to USD strength.

AUD/USD – AUD/USD heading towards the August lows as the USD gains across the board and the AUD suffers from talk of big tariffs on China. But yield spreads are still supportive so unless equities weaken support should be found above the year’s low of 0.6348.

Equities – S&P 500 continuing to make news highs post-election. But while tax cuts are seen as positive, tariff increases are not and at current valuations upside looks very limited.