Psychology for major markets Oct 24
USD generally steady but JPY remains weak
EUR/USD – Edging higher within the 1.1540-1.1780 range that has held this month, helped by a stronger Eurozone PMI, but still broadly neutral awaiting US CPI and next week’s central bank meetings.
USD/JPY – JPY still weakening as new government shows little interest in halting JPY decline.
EUR/GBP – Weaker than expected September CPI pushed EUR/GBP back above 0.87, following soft labour market data last week as markets priced in potential for earlier BoE easing, but highs of the year at 0.8763 still out of reach near term.
AUD/USD – Dipped to test the gently rising trend seen since April as risk sentiment dropped on concerns around Trump’s China tariffs and US bank problems, but key 0.64 support area held and mild positive tone returning.
Equities – S&P still close to all time highs despite valuation concerns expressed by IMF and others, helped by positive earnings news. Downside risks increasing but no immediately obvious trigger to turn the trend.