Currency Moves

I know for equity traders currencies can be boring, but they can also be the reason the market moved, damn what CNBC said.

We have some interesting movement and it seems to be largely based on the $USD, although the Yen is somewhat interesting, I will NOT be watching it until 3:45 a.m. like last week just to make sure we weren't blind-sided, but the Yen and it's pairs the EUR/JPY and USD/JPY are important for what is left of the carry trade, when you are trading currencies at up to 200:1 leverage and then buying stock, even a slight change can turn a trade very negative very fast, thus we watch currencies, plus there's the risk on/risk off provided by the EUr/USD which long term is in huge trouble (actually the market's reversion to the mean is in huge trouble, but it also effects overnight and intraday trade as the Euro tends to trade with the market and the other side of the pair, the $USD trades opposite the market (weak $USD =cheap stocks and programs buy/ Strong $USD = expensive stocks and programs sell). So it is important that someone keep an eye on them.

Tonight we have some strong movement mostly in the $USD, but a bit in the Yen which could become interesting if it keeps up. First here are the pairs.

 USD/JPY is seeing downside, this is not good for the carry trade and by extension the stock market.

 However the weakness seems to be in the $USD as seen here in the USD/CHF

 And the EUR/USD-the pair moving up means the Euro is higher, $USD is lower.

Now for single currency futures.

This is a 3C negative divergence from last week just before the BOJ announced their policy decision, 3C was correct here.

 Now the longer term 3C is indicating the Yen may be in trouble with a large positive divergence

 And the Yen is moving right now, so far interesting , but not alarming, it could grow to alarming.

 The Euro has a positive divergence sending it higher, this is generally good for the market because it means the $USD is likely down.

And here's the divergence in the $USD, the negative is quite sharp.

So far the Market Index Futures haven't moved much, although all have significant negative divergences in them short term.