Psychology for major markets Oct 27
USD generally steady, equities hitting new highs
EUR/USD – In the centre of the 1.1540-1.1780 range that has held this month, helped by a stronger Eurozone PMI, but still broadly neutral awaiting this week’s central bank meetings.
USD/JPY – JPY marginally firmer on the crosses after some verbal intervention from cabinet secretary Kihara, but remains at very weak levels awaiting central banks decisions this week.
EUR/GBP – Weaker than expected September CPI pushed EUR/GBP back above 0.87, following soft labour market data last week as markets priced in potential for earlier BoE easing, but highs of the year at 0.8763 still out of reach near term.
AUD/USD – AUD stronger on expectations of a US/China trade deal which boosted CNY and regional equities. Still in the centre of the 0.6350-0.6700 range that has held since April, but focus back on the top end.
Equities – S&P futures making new all time highs on hopes of a US/China trade deal this week. Valuations remain very high, and quarterly earnings from most major tech companies due this week could have an impact.