Psychology for major markets July 8th

EUR/USD – EUR/USD still showing a mild positive bias after initial dip after the French election, helped by the softer US data and more dovish Powell tone in the last week.

USD/JPY – USD/JPY dipped a little on general USD weakness after soft US data, but still making new lows on the crosses. Underlying sentiment still JPY negative in the absence of intervention

EUR/GBP – Stable just above 0.8450-0.85 after the UK election. Little election impact seen, with Labour landslide victory well anticipated.

AUD/USD – Tone remains mildly positive with RBA one of the more hawkish central banks, but easier Fed expectations still look necessary to break above the year’s highs above 0.68.

EUR/CHF – Stabilising near 0.97 which looks likely to be the centre of a new range as French political concerns die down.

Equities – Valuations getting stretched in the US. Europe less expensive but still challenged by weak growth and some political concerns.