Psychology for major markets March 20th

EUR/USD – EUR/USD slipping lower as risk appetite dips with central banks emphasising uncertainty. Yields have also moved lower suggesting risks are now on the downside.

USD/JPY – USD/JPY tested the 150 area but found strong resistance there and with yield spreads still pointing substantially lower looks set for further losses helped by weaker risk appetite.

EUR/GBP – EUR/GBP dipping back below 0.84 following mixed labour market data, but risks may be on the upside on BoE MPC meeting.

AUD/USD – Tested the year’s high near 0.64 as Asian equities rose but has fallen back as risk sentiment has declined. Still scope for a break higher if US yields don’t rise and equities stabilise.

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns. European markets benefiting from expectations of increased defence spending and hopes of an end to the Ukraine war, but worries around tariffs and geopolitics remain.