Psychology for major markets December 9th

EUR/USD – Bouncing from 1.05 helped by lower US yields and talk of Chinese monetary easing. Spreads suggests scope above 1.06

USD/JPY – Still looks biased lower medium term but better Chinese equity tone triggering some JPY weakness on the crosses.

EUR/GBP – EUR/GBP back below 0.83 but fairly steady for now. If ECB just cuts 25bps in December risks may be marginally on the upside.

AUD/USD – AUD/USD slumped after weaker than expected Q3 Australian GDP data and tested the year’s low below 0.6350, but strong recovery seen on a bounce in Chinese equities following indication of easier monetary policy next year. Upside favoured.

Equities – S&P 500 remaining resilient despite a mild correction from the post-election rally. Tariff details and Fed stance will be key in the coming weeks after solid employment report.