Psychology for major markets Jul 02

EUR/USD – EUR/USD edging off 4 year highs above 1.18 as upcoming US employment data later in the week as well as July 9 tariff deadline and the US budget bill suggests two way risks.

USD/JPY – JPY still soft on the crosses and USD/JPY correcting higher as equities remain firm and Trump indicates no trade deal is likely with Japan.

EUR/GBP – Holding above 0.85 with GBP undermined slightly against the EUR by USD weakness.

AUD/USD – Found good support below 0.64 and retains scope for gains above 0.66 although rising expectations of RBA easing are limiting upside

Equities – S&P futures making new all time highs and sentiment remains positive helped by easing Mid-East tensions and rising hopes of Fed easing, but valuation remains expensive