Psychology for major markets 24 Jan

Improving global equities putting the USD on the back foot
EUR/USD – Strong USD tone fading slightly but hard to see much USD weakness while geopolitical concerns rise and US equities outperform, though rising global equities are starting to put the USD under pressure.
USD/JPY – USD/JPY coming off new highs for the year and looking stretched. Nothing from the BoJ but Ueda’s press conference hinted at potential April tightening, suggesting JPY is likely near the bottom here.
EUR/GBP – Underlying sentiment GBP positive as UK inflation is perceived to be more persistent than elsewhere, and UK PMIs continue to outperform.
AUD/USD – Better global equity performance helping the AUD to recover after recent weakness due to China concerns. Gains continue to depend on improving global and regional risk appetite.
USD/CHF – CHF looks toppish here as SNB turns more dovish and halts FX selling.
Equities – US market making new all time highs but may be vulnerable to any decline in easing expectations.