Psychology for major markets August 6th

EUR/USD – EUR/USD falling back to 1.09 in a more risk negative market, but underlying tone remains quite neutral.

USD/JPY – USD/JPY falling back from resistance at 146 after the Monday recovery. Underlying tone remains weak, but still risks of a bigger correction to 1498 before downtrend resumes.

EUR/GBP – Testing 0.86 as GBP suffers from weaker risk sentiment and position unwinding, but further weakness in risk sentiment needed to extend gains.

AUD/USD – AUD found some support below 0.64 but continues to struggle in a risk negative environment. Even so, upside scope exists if risk stabilises.

Equities – Slumped after softer US employment data, with high US valuations limiting the scope for recovery despite sharp yield declines.