Psychology for major markets Jan 19

EUR/USD – Rallied a little on the Trump threat of tariffs if the US is not allowed to buy Greenland, but holding fairly steady in the low 1.16s.

USD/JPY – Slipped a little lower on the back of suggestions of possible joint US and Japan intervention, and downside still favoured as equities slip on Greenland uncertainty.

EUR/GBP – EUR/GBP failed to extend decline below 0.8650 after stronger than expected November GDP data, and risks moving towards the upside helped by declining risk sentiment.

AUD/USD – AUD remains well supported by yield spreads and has been resilient to equity declines on Greenland but is vulnerable to a more general equity decline.

Equities – S&P 500 made a new all time highs on January 13 but has slipped lower on the Trump threat of tariffs over the Greenland issue and looks vulnerable given high valuation.