Psychology for major markets Jul 07

EUR/USD – EUR/USD edging off 4 year highs above 1.18. Underlying USD sentiment stabilising with  tariff delay until August 1st seen as increasing chances of trade deals.

USD/JPY – JPY still soft on the crosses and USD/JPY correcting higher as equities remain firm and Japanese wage data comes in soft.

EUR/GBP – Holding above 0.86 with UK growth sentiment weakening as expectations increase of tax increases in the autumn.

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

Equities – S&P futures still making new all time highs and sentiment remains positive helped by fading tariff concerns and rising hopes of Fed easing, but valuation remains expensive and market looks vulnerable to bad news