Psychology for major markets Feb 2

EUR/USD – EUR gaining ground on the back of lower US yields and higher equities. Focus on the US employment data with earnings growth perhaps the most important aspect for the Fed.

USD/JPY – USD/JPY looking stretched as 10 year yield spreads still suggest downside risks, but JPY under pressure short term due to strong global equities.

EUR/GBP – Underlying sentiment GBP positive with BoE still seen to be more hawkish than other major central banks following the MPC statement.

AUD/USD – Solid global equity performance helping the AUD to recover after recent weakness due to China concerns, despite softer CPI data.

USD/CHF – CHF benefiting from Middle East unrest, but a retest of the lows below 0.93 would likely require something that significantly undermined confidence and growth expectations.

Equities – US market making new all time highs but some banking concerns emerging and risks if rates rise due to strong employment data