Continuum Economics
  • Search
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
  • Calendar
  • Forecasts
  • Events
  • Data
  • Newsletters
  • My Alerts
  • Community
  • Directory
  • About Us
  • Buy
  • Invite A Friend
  • My Basket
  • Articles
    • All
    • Thematic
    • Tactical
    • Asia
    • EMEA
    • Americas
    • Newsletters
    • Freemium
    • Editor's Choice
    • Most Viewed
    • Most Shared
    • Most Liked
  • Calendar
    • Interactive
      • China
      • United States
      • Eurozone
      • United Kingdom
    • Month Ahead
    • Reviews
    • Previews
  • Forecasts
    • Forecasts
    • Key Views
  • Events
    • Media
    • Conference Calls
  • Data
    • Country Insights
    • Shadow Credit Ratings
    • Full CI Data Download
  • Newsletters
  • My Alerts
  • Community
    • FX
    • Fixed Income
    • Macro Strategy
    • Credit Markets
    • Equities
    • Commodities
    • Precious Metals
    • Renewables
  • Directory
  • My Account
  • Notifications Setup
  • Account Details
  • Recent Devices
  • Distribution Lists
  • Shared Free Trials
  • Saved Articles
  • Shared Alerts
  • My Posts
Published: 2024-01-05T18:46:36.000Z

Psychology for major markets 8 Jan

byAdrian Schmidt

Senior FX Strategist
-

Focus shifting to US CPI.

EUR/USD – EUR/USD gaining support from upward revisions in services PMIs, but 1.10 is likely to be a bridge too far ahead of US CPI next week. 
USD/JPY – Rising US yields at the start of the year boosting USD/JPY, but gains starting to look a little excessive. Downside scope into US CPI.
GBP/USD – GBP outperforming as UK yields rise strongly at the beginning of the year, and PMIs outperform, but upside more limited near term as market already prices a relatively less dovish BoE, and EUR/GBP losses have outstripped yield spread moves.
AUD/USD – Backing away from the 2023 highs near 0.69 as the USD makes a general recovery, but still well supported as long as risk sentiment holds up. 
USD/CHF – CHF showing remarkable strength early in the year, in spite of the SNB’s more dovish tone and the end of their FX reserve selling. But gains look overdone.
Equities - Payrolls strong but not strong enough to cause alarm. We expect CPI to be acceptably subdued, but the market is vulnerable to an upside surprise. 

Continue to read the article for free
Login

or

or

Topics
Foreign Exchange
Psycho

GENERAL

  • Home
  • About Us
  • Our Team
  • Careers

LEGAL

  • Terms and Conditions
  • Privacy Policy
  • Compliance
  • GDPR

GET IN TOUCH

  • Contact Us
Continuum Economics
The Technical Analyst Awards Winner 2021
The Technical Analyst Awards Finalist 2020
image