Psychology for major markets Nov 4

EUR/USD – Breaking to its lowest since late July. Little obvious trigger for the move but the USD is seeing some general strength helped by strong US equities and solid survey data in the absence of any official US data.

USD/JPY – USD/JPY holding at key resistance area of 154.40 helped by some verbal intervention from Finance minister Katayama, but not backing off significantly. EUR/JPY falling back from all time highs as equities soften.

EUR/GBP – EUR/GBP reached new highs for the year at 0.8818 on reports of a reduction in OBR productivity projections which will further increase UK fiscal problems, but has dropped back as EUR has softened.  Two way risks on BoE meeting this week, with modest EUR/GBP decline likely on the unchanged rate decision most expect.

AUD/USD – AUD gained on expectations of a US/China trade deal and higher than expected Q3 CPI, but AUD/USD has slipped back on general USD strength post-FOMC and some softening in equity prices, and has moved to the bottom half of the 0.64-0.67 range that has held for most of the year.

Equities – S&P 500 slipping back from all time highs without an obvious trigger, although a correction is overdue given high valuations and a slightly less dovish Fed view.