Psychology for major markets June 21st

EUR/USD – EUR/USD still under downside pressure with weaker PMIs adding to the concerns around French politics. But downside may be limited if US PMIs also weaken

USD/JPY – USD/JPY continues to push on significant technical levels above 158, despite there being little obvious trigger for further JPY weakness. Intervention risks rising but weaker risk sentiment looks necessary to turn the market.

EUR/GBP – Stabilisation in the mid-0.84s as French risks now seen as priced in. More dovish BoE stance limiting downside.

AUD/USD – More hawkish RBA statement than expected providing support, with some further upside scope if market prices out rate cut expectations.

EUR/CHF – Heavy CHF short positions suggest further downside risk but some stabilisation likely near 0.95 if French political risks are seen as priced in.

Equities – New high seen in the US as yields dipped but valuations getting stretched.