Psychology for major markets Aug 19

EUR/USD – EUR/USD holding below 1.17 after the Ukraine Summit produced little of real consequence. Market awaits PMI data and Jackson Hole meeting later this week.

USD/JPY – USD/JPY continues to trade steadily in the 147s still supported by underlying risk positive tone despite yield spreads pointing lower.

EUR/GBP – Better than expected UK GDP data put support at 0.86 under pressure, but this has held and focus now on CPI data this week.

AUD/USD – Found support above key 0.64 area and holding in mid range near 0.65 after fairly neutral employment data, but downside risks increasing with RBA cuts looking more likely.

Equities – S&P recovered from the post-employment lows to make new all time highs, but downside risks persist if more evidence of US slowdown emerges, with impact of tariffs still to come.