Psychology for major markets July 17th

EUR/USD – EUR/USD holding close to 1.09 with the USD still slightly on the back foot after Trump concerns over a strong USD, but may struggle to extend gains ahead of the ECB meeting.

USD/JPY – USD/JPY falling as Trump highlights concerns over a weak JPY hurting the U.S. and shorts are squeezed. 

EUR/GBP – Mild negative EUR bias continues, with some optimism about prospects for improved UK growth helped by the latest GDP data, and some mildly hawkish BoE comments. New 2 year lows under threat, but valuation and IMM positioning looking stretched.

AUD/USD – Tone remains mildly positive with RBA one of the more hawkish central banks, with scope for new highs for the year above 0.68 after US yield drop on weaker CPI.

Equities – Valuations getting stretched in the US. Europe less expensive but still challenged by weak growth and some political concerns.