Psychology for major markets July 22nd

EUR/USD – EUR/USD steady near 1.09. Focus on US politics but no current impact from Biden dropping out of the race.

USD/JPY – USD/JPY continuing to weaken helped by JPY positive statement from senior LDP official

EUR/GBP – Holding steady above 0.84 but valuation and positioning both suggest GBP strength is overextended.

AUD/USD – AUD shying away from a test of the year’s highs with soft Chinese equities weighing on sentiment, but should be well supported above 0.66.

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