Psychology for major markets Jul 16

EUR/USD – USD generally firmer as S&P 500 made new all time highs on Tuesday. EUR/USD in mild corrective mode but looks well supported near 1.15.

USD/JPY – JPY still under pressure as equity markets prove resilient to tariff announcements and Japanese Upper House elections create some fiscal concerns.

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.