Psychology for major markets April 4th

EUR/USD – Reversing some of the gains seen on Thursday as the USD manages a general recovery and European equity markets weaken, but broadly consistent with yield spreads near 1.10.

USD/JPY – Sharply lower on big decline in global equities with the JPY acting as a relative safe haven, but sharp decline in JGB yields means downside now more limited

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

AUD/USD – Reversing Thursday’s gains and retesting the bottom of its recent range as risk aversion dominates.

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