Psychology for major markets March 5th

EUR/USD – EUR/USD benefiting from increased European defence spending plans pushing yields higher. Scope for the rise to extend towards 1.10 if yield rises are sustained.

USD/JPY – USD/JPY failed to sustain the break below the 148.65 December low as equities rallied, but yield spreads still point lower and risks remain to the downside.

EUR/GBP – EUR/GBP breaking higher as EUR yields rise, and now looks well supported below 0.83.

AUD/USD – Held above the main support area below 0.62 and has scope to advance to test 0.64 if risk sentiment stabilises

Equities – US market struggling at the highs due to high valuations, declining growth expectations and tariff concerns, but European markets benefiting from expectations of increased defence spending.