Published: 2024-07-23T10:01:29.000Z
Psychology for major markets July 23rd
Senior FX Strategist
2
JPY firm, risk negative tone in FX
EUR/USD – EUR/USD edging a little lower from 1.09 but little action likely until PMI and US GDP data later in the week.
USD/JPY – USD/JPY continuing to weaken helped by JPY positive statement from senior LDP official and weakening risk sentiment in Asia.
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 find support above 0.66.
Equities – Valuations getting stretched in the US. Europe less expensive but still challenged by weak growth and some political concerns.