Psychology for major markets July 23rd

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.