Psychology for major markets November 4th

EUR/USD – EUR/USD testing the top end of the recent range at 1.09 as latest polls edge towards Harris even though Trump remains the betting favourite.

USD/JPY – JPY benefitting from the latest US polls but significant JPY upside still unlikely until or unless there is some evidence of US economic weakness and a decline in equities.

EUR/GBP – GBP still under a little pressure after the post-budget decline with risks of further losses seen if the Bo cut rates this week.

AUD/USD – Struggling against firm USD despite solid domestic fundamentals and more hawkish RBA after strong employment data. But finding support in mid-0.65s and may be the best performer on a Harris win.

Equities – S&P 500 may be toppy despite solid growth data with US yields still firm and valuations stretched. Market currently seeing upside risks on a Republican clean sweep but likely impact of US election remains unclear.