Pre-Market Futures

Even though the European and UK markets were closed overnight for Easter, news out of the Eurozone still drove futures in the overnight session.

 The EUR/USD hit an overnight low somewhere around $1.277.

The head of the Cypriot Parliament spoke out saying he wanted to pull Cyprus out of the Eurozone, this apparently sent Euro futures higher and with it, ES and NQ futures as well. As of right now the EUR/USD has an intraday negative divergence.

 ES moved higher, but in to an opening intraday negative divergence as well.

NQ shows where accumulation started overnight and an intraday negative divergence in pre-market.

The Carry pair, USD/JPY fell overnight with the Nikkei (down nearly 2%) on another consecutive miss in the Tankan manufacturing Index.

It would seem as if the Japanese PM and the BOJ no longer have the credibility to jawbone the Yen lower, now the market is demanding action from the BOJ instead of promises.

Also in Asia, official Chinese PMI missed, unlike the initial HSBC flash PMI for China which improved, either there's some error or the Chinese are purposefully driving the index lower to cool inflation and hot money flows in to the country.

Other news besides saber rattling came from South Korea in the form of talk of rate cuts, S. Korea may soon be joining the global currency devaluation party, this would have a negative effect on the Japanese Yen (making it harder to drive lower) which would of course effect the carry pairs as well increasing the cost of carry.