Psychology for major markets May 29

EUR/USD – EUR/USD continues to oscillate in the 1.11-1.15 range. Court ruling that reciprocal tariffs are illegal has supported the USD, but gains are modest with expectations rising that other avenues for higher tariffs will be found.

USD/JPY – Rejected the move above 148 and dipped below 145 on US downgrade but more significant JPY recovery will still likely need weaker US equity performance.

EUR/GBP – GBP still firm but progress below 0.84 will be hard after 6 consecutive weeks of declines.

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