Psychology for major markets November 20th

EUR/USD – Back to the middle of the recent 1.05-1.06 range as risk sentiment recovers. Little on the calendar to trigger a break this week. Focus shifting to December central bank meetings with the Fed decision in the balance.

USD/JPY – USD/JPY back up as Russia nuclear concerns fade, but rise looks excessive based on yield moves and threat of intervention makes moves above 156 look hard to sustain

EUR/GBP – GBP better bid after stronger than expected CPI, but break below 0.83 likely to prove difficult as long as economic confidence remains low.

AUD/USD – AUD/USD bounced modestly with general USD correction but remains depressed relative to yield spreads in part due to concerns about tariffs and China.

Equities – S&P 500 coming off post-election highs. While tax cuts are seen as positive, tariff increases are not and at current valuations upside looks very limited. Geopolitics also looking negative.