Psychology for major markets Sep 25

EUR/USD – EUR/USD re-established in the 1.17-1.18 range.

USD/JPY – USD/JPY testing the top end of the recent range, having rejected the break lower seen after the FOMC, but hard to see a rationale for an upside break.

EUR/GBP – Holding below the year’s high of 0.8763 with the EUR softening after the weak IFO survey, but upside risks still dominate.

AUD/USD – Rose back above 0.66 after a stronger than expected CPI number, and has further upside scope if conditions remain risk friendly

Equities – S&P continues to hit new all time highs, but downside scope for yields now very limited and valuation is very extended.