Psychology for major markets July 18th

EUR/USD – EUR/USD holding close to 1.09 with the USD still slightly on the back foot after Trump concerns over a strong USD, but may struggle to extend gains ahead of the ECB meeting.

USD/JPY – USD/JPY falling as Trump highlights concerns over a weak JPY hurting the U.S. and shorts are squeezed. 

EUR/GBP – Mild negative EUR bias continues, with some optimism about prospects for improved UK growth helped by the latest GDP data, and some mildly hawkish BoE comments. New 2 year lows under threat, but valuation and IMM positioning looking stretched.

AUD/USD – Tone remains mildly positive with RBA one of the more hawkish central banks, but still holding fairly steady in the 0.67-0.68 area.

Equities – Valuations getting stretched in the US. Europe less expensive but still challenged by weak growth and some political concerns.