Psychology for major markets April 7th

EUR/USD – Starting to move lower as European equities fall sharply and yields drop, with 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 – Mildly firmer as the USD declines reflecting GBP’s slightly more USD like characteristics and GBP’s relatively riskier status

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

Equities – Bloodbath on US tariff increases. High US valuations still suggest scope for further declines.