Published: 2024-07-18T10:07:38.000Z
Psychology for major markets July 18th
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Senior FX Strategist
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USD remains slightly offered ahead of the ECB meeting
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, but still holding fairly steady in the 0.67-0.68 area.
Equities – Valuations getting stretched in the US. Europe less expensive but still challenged by weak growth and some political concerns.