Psychology for major markets May 22

EUR/USD – EUR/USD slipping little lower after softer PMIs but remains well within the recent ranges. But there will be downside risks if US PMIs are stronger than expected.

USD/JPY – Rejected the move above 148 and dipped below 145 on US downgrade but more significant JPY recovery will still likely need weaker US equity performance.

EUR/GBP – Found support near 0.84. More neutral tone likely unless we see significant news.

AUD/USD – Looks well supported below 0.64 and still has some upside potential if Asian equity markets maintain recent improvement.

Equities – S&P looking stretched near 6000 as some significant negative tariff impact still likely despite recent trade deals