Psychology for major markets May 19

EUR/USD – EUR/USD pushing higher after Moody’s downgrade the US, but still in the centre of the recent 1.11-1.15 range

USD/JPY – Rejected the move above 148 and dipping 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