The S&P is currently down by about 1.45% in early trade, if you saw my posts from last night then you know it was a bust night in FX land and FX, especially (rather almost exclusively) the EUR/USD has moved trade the last several months and through 2011 at large, I'll have more to say on this in another post.
The question now is a "which came first, the chicken or the egg?" type question. Is the market trading down because of the Euro trading down or is this a real risk off trade?
I'll be bringing you more, but the most obvious clue to the answer is to be found in these 2 charts.
The EUR/USD which took a major fall last night would seem to be the answer. However, for the last 10 hours the Euro has traded around the $1.40 area.
This is ES overnight and the last 10 hours in white, it has traded sequentially lower while the Euro is stuck moving sideways. So the answer as of now is however this started, MF Global, Yen Intervention, not so great EFSF news over the weekend or all 3, it now seems that the market is in risk off mode as the Euro has been lateral for 10 hours and the ES has been down.
No comments:
Post a Comment