Psychology for major markets Jul 21

EUR/USD – EUR finding support near 1.16 with no news on tariffs and risk positive tone persisting.

USD/JPY – JPY managing a modest correction after two months of decline against the EUR, but turn in risk sentiment needed to restore JPY positive tone.

EUR/GBP – Backing away from 0.87 after stronger UK CPI in June, but with UK growth sentiment weak and expectations of tax increases in the autumn underlying sentiment is GBP negative

AUD/USD – Found good support below 0.64 and retains scope for gains above 0.66 if the USD slips back, provided regional equity sentiment holds up.

Equities – S&P futures making new all time highs, but valuation is very expensive and market looks vulnerable if latest tariff announcement is taken seriously.