Psychology for major markets Aug 18

EUR/USD – EUR/USD holding below 1.17 ahead of the Trump-Zelensky meeting. Picture looking more rangy until we see some significant economic news

USD/JPY – USD/JPY slipped lower helped by stronger than expected Japanese Q2 GDP but equity strength continues to limit scope for JPY gains on crosses.

EUR/GBP – Better than expected UK GDP data put support at 0.86 under pressure, but this has held any risks now may be more to the GBP downside if BoE turns more dovish

AUD/USD – Found support above key 0.64 area and holding in mid range near 0.65 after fairly neutral employment data, but downside risks increasing with RBA cuts looking more likely and equities looking more fragile.

Equities – S&P recovered from the post-employment lows to make new all time highs, but downside risks persist if more evidence of US slowdown emerges, with impact of tariffs still to come.