Psychology for major markets Feb 15

EUR/USD – EUR holding the 1.07-1.08 range but testing the lower end as the USD remains generally firm after the strong January CPI data

USD/JPY – USD/JPY extending gains above 150 helped by strong US CPI and resilient equity markets. Falling US equity risk premia continue to encourage JPY bears, but verbal intervention is becoming louder and the risk of some short term FX action from the MoF is increasing.

EUR/GBP – GBP sentiment weakening after weaker than expected CPI in January and GDP in Q4. 0.85 now looks like a base with scope to explore up to 0.86.

AUD/USD – AUD resilient despite weak employment data helped by strong global equity market performance. But downside risks remain as there is scope for the RBA to turn more dovish.

USD/CHF – CHF falling back after weaker CPI helped by strong equity markets and the SNB no longer providing support.

Equities – US markets remaining close to all time highs but may be vulnerable to any further decline in easing expectations.EUR/USD – EUR holding the 1.07-1.08 range but testing the lower en as the USD remains generally firm after the strong January CPI data