Psychology for major markets May 13

EUR/USD – Dropped sharply on the announcement of a US trade deal with China. Risks remain on the downside short term.

USD/JPY – General USD and equity gains on US/China deal propelled it above 148, but scope for gains now looks much more limited.

EUR/GBP – GBP recovered the ground lost to the EUR since the tariff announcement but is likely to find progress sub-0.84 more difficult.

AUD/USD – Oscillating around 0.64 as trade sentiment fluctuates, but upside favoured if US/China deal holds.

Equities – Strong recovery on US/China deal after initial bloodbath on US tariff increases but upside scope now looks much more limited with all time highs from February in sight