Psychology for major markets November 22nd

EUR/USD – Dropping sharply on weak PMIs as market prices a 50bp December cut as a 50-50 call. Further downside possible on aggressive ECB or more cautious Fed.

USD/JPY – JPY generally firm on geopolitical concerns and weak European PMIs. USD/JPY fairly steady for now as long as US data is solid but JPY upside favoured on cross demand.

EUR/GBP – GBP firm against the EUR but EUR/GBP still struggling to hold below 0.83 as UK data softens. GBP/USD under pressure.

AUD/USD – AUD/USD showing some resilience despite geopolitical concerns finding demand below 0.65.

Equities – S&P 500 coming off post-election highs. While tax cuts are seen as positive, tariff increases are not and at current valuations upside looks very limited. Geopolitics also looking negative.