Psychology for major markets Jul 30

EUR/USD – EUR/USD dipped below 1.16 as trade deal with the US is seen as less favourable to the EU than hoped, and reduced trade uncertainty is seen favouring the USD, but finding some stability on the 1.15 handle.

USD/JPY – USD/JPY edged higher on general post-trade deal USD strength but JPY starting to perform slightly better as equities move off their highs.

EUR/GBP – Broke above 0.87 after weaker than expected UK June retail sales, but has slipped back below as UK/US trade deal seen as favourable relative to EU deal. 0.86 nevertheless likely to be solid support.

AUD/USD – Slipping back towards the middle of the year’s range as the USD rallies generally on trade news and RBA rate cut looks more certain after CPI data.

Equities – S&P futures slipping back a little on a sell on the news reaction to trade deals, but US equity indices remain extremely highly valued and vulnerable to any slowdown.