Psychology for major markets 3 Jan

EUR/USD – EUR/USD falling back sub-1.10 as US yields rise, helped by softer equities, but yield spreads suggest support near 1.09.

USD/JPY – Rising US yields at the start of the year helping to protect 140, but JPY could see gains on the back of cross trading.

GBP/USD – A soft start to the year with potential for the BoE to turn more dovish as data softens given market pricing for BoE remains relatively hawkish

AUD/USD – Backing away from the 2023 highs near 0.69 as the USD makes a general recovery, but still well supported as long as risk sentiment holds up. 

Equities - Key data unlikely to do much damage but Fed speakers may downplay rate cut expectations in the market.