Psychology for major markets Jul 10

EUR/USD – EUR/USD sitting just off 4 year highs above 1.18. Underlying USD sentiment stabilising with tariff delay until August 1st seen as increasing chances of trade deals, but risk of reaction to tariff announcements.

USD/JPY – JPY stabilising at lower levels but remains under pressure as equity risk premia continue to decline and Japan is perceived to be one of the losers from tariffs at this stage

EUR/GBP – Holding above 0.86 with UK growth sentiment weakening as expectations increase of tax increases in the autumn.

AUD/USD – Found good support below 0.64 and retains scope for gains above 0.66 after RBA refrains from a further rate cut at this stage.

Equities – S&P futures still close to all time highs and sentiment remains positive helped by fading tariff concerns, but valuation remains expensive and market looks vulnerable to bad news