Psychology for major markets Aug 21

EUR/USD – EUR/USD slightly firmer in the mid-1.16s after better PMIs awaiting Powell comments at Jackson Hole

USD/JPY – USD/JPY continues to trade steadily in the 147s still supported by underlying risk positive tone despite yield spreads pointing lower.

EUR/GBP – Stronger than expected UK CPI and strong UK PMI pushing EUR/GBP towards another test of 0.86, but support remains strong and little scope for further decline in BoE easing expectations.

AUD/USD – Found support above key 0.64 area but showing soft tone as USD generally edges higher and market anticipates RBA rate cuts.

Equities – S&P recovered from the post-employment lows to make new all time highs, but downside risks persist if more evidence of US slowdown emerges, with impact of tariffs still to come.