Psychology for major markets Aug 25

EUR/USD – EUR/USD stable but bias for some further USD losses after Powell signals 25bps cut Sep and market debates more cuts.

USD/JPY – USD/JPY consolidates at lower level after Powell rate signal. 

EUR/GBP – Failed another test of 0.86 but underlying GBP sentiment still mildly positive after recent UK data. 0.86-0.87 range for now.

AUD/USD – Pushed up to 0.6500 after USD selloff post Powell, but could lag others with market anticipating RBA rate cuts.

Equities – S&P buoyed as Powell signals Sep cut and then likely more easing into 2026.  However, tech still seeing corrective pressures.