Psychology for major markets Jul 25

EUR/USD – EUR/USD holding in mid-1.17s with talk of an EU/US trade deal seen as mildly supportive.

USD/JPY – JPY was better bid on trade deal news, but USD/JPY failed to sustain a dip sub 146 and JPY has come under pressure on talk of Ishiba resignation. EUR/JPY still making new 1 year highs and in its ninth consecutive week of gains.

EUR/GBP – Broke above 0.87 after weaker than expected UK June retail sales, with EUR yields firm after more hawkish Lagarde comments post-ECB.

AUD/USD – Holding near highs for the year above 0.66 as risk sentiment improves on talk of trade deals.

Equities – S&P futures continuing to make all time highs on news of trade deals, but valuation is very expensive and market still vulnerable if economy shows weakness in response to tariffs.