Psychology for major markets April 8th

EUR/USD – Moving lower as markets stabilise with yield spreads now suggesting a move sub-1.09

USD/JPY – Fell sharply on big decline in global equities, but stabilising in mid-140s with Asian sentiment particularly weak. But rising risk premia suggests more JPY gains to come.

EUR/GBP – Holding recent gains reflecting GBP’s relatively riskier status

AUD/USD – Holding at post-pandemic lows near 0.60. Decline in the last year has to some extent front run the current equity weakness, but upside very limited unless sentiment turns.

Equities – Some stabilisation after bloodbath on US tariff increases. High US valuations still suggest scope for further declines unless Trump delays tariff increases.