Psychology for major markets July 11th

EUR/USD – EUR/USD holding just above 1.08 but looking fairly neutral ahead of the US CPI data later.

USD/JPY – USD/JPY dipped a little on general USD weakness after soft US data last week, but underlying sentiment still JPY negative in the absence of intervention and EUR/JPY still making new all-time highs.

EUR/GBP – Mild negative bias continues, with some optimism about prospects for improved UK growth helped by the latest GDP data, and some mildly hawkish BoE comments.

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.