Published: 2025-07-16T10:03:01.000Z
Psychology for major markets Jul 18
Senior FX Strategist
3
Risk positive currencies firm as S&P makes new highs. JPY remains weak
EUR/USD – EUR finding support near 1.16 with no news on tariffs and risk positive tone persisting.
USD/JPY – JPY still under pressure as equity markets prove resilient to tariff announcements
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.