Published: 2025-08-07T17:22:57.000Z
Psychology for major markets Aug 7
Senior Economist , North America
6
USD under some pressure as Fed easing speculation mounts.
EUR/USD – EUR/USD stabilizing in mid-1.16 ahead of Tuesday's US CPI which will be a crucial release for the Fed.
USD/JPY – USD/JPY maintaining a modestly softer tone after the dip on the US employment numbers. Potential for further declines if US equities weaken further.
EUR/GBP – GBP supported by close BoE decision but range still centered around 0.87.
AUD/USD – Found support above key 0.64 area but downside risks increasing with RBA cuts looking more likely and equities looking more fragile.
Equities – S&P recovered from the post-employment lows, but downside risks persist as evidence of US slowdown emerges, with impact of tariffs still to come.