Psychology for major markets September 12th

EUR/USD – Risk slightly on the upside on ECB as market may be disappointed at lack of forward guidance of future easing.

USD/JPY – USD/JPY still trading offered big picture despite bounce after equity rally overnight.

EUR/GBP – GBP edged lower after UK GDP data disappoints, but break above 0.8450 would likely require shift of sentiment towards expecting a BoE cut next week.

AUD/USD – Better risk appetite after equity rally overnight triggers gains to near 0.67, but hard to see an upside break without better China sentiment.

Equities – Better tone at the start of the week and scope for Fed easing suggests downside risks are not substantial without much weaker data