Psychology for major markets Jul 24

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

USD/JPY – JPY better bid on trad deal news, but USD/JPY struggling to dip sub 146 and JPY still struggling to make gains on the crosses while equities remain firm

EUR/GBP – Backed away from 0.87 after stronger UK CPI in June, but rising monetary easing expectations on the back of more fiscal tightening suggest GBP downside risks

AUD/USD – Making new 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.