Psychology for major markets January 8th

EUR/USD – Rally faded as US job openings surprised on the upside while soft European data also weighed, although yield spreads still suggest scope for reocvery.

USD/JPY – Still well bid on the back of rising US yields and general USD positive sentiment, but upside limited as we approach intervention territory near 160.

EUR/GBP – Holding near 0.83 but evidence of low confidence in UK economy from rising long bond yields suggests GBP upside quite limited at current high levels

AUD/USD – Holding near the lows as US yields hold firm and markets remain disappointed at the lack of China stimulus and worried about upcoming impact of tariffs.

Equities – S&P 500 holding fairly steady just below the highs despite having slipped a little on rising US yields. Some vulnerability to any further rise in yields a risk premia are now very low.