Psychology for major markets Sep 22

EUR/USD – USD holding a 1.17-1.18 range firmer after bounce in US yields.

USD/JPY – USD/JPY broke the low end of the range seen since July at 146 after the FOMC but has quickly rebounded and JPY remains weak on the crosses as equities remain firm.

EUR/GBP – Breaking to the upside of the recent range on larger than expected public sector deficit numbers, but year’s highs at 0.8763 still hard to reach.

AUD/USD – Slipped a little lower after weaker than expected employment data but remains well supported as long as the environment remains risk positive

Equities – S&P continues to hit new all time highs on the back of lower US yields, but downside scope for yields now very limited and valuation is very extended.