Currency Update

This will have to be verbal, but the risk supporting EUR/USD is breaking down and the risk supporting Carry pairs of AUD/JPY and EUR/JPY are heading lower cutting some support from under the market on the currency side.

The $USD is significantly stronger over the last 30 mins at new highs on the week, market negative, although I am surprised judging by the single currency futures that they didn't hold up better.

When you get to these extremes in the market, the F_E_D becomes part of the equation in a negative way and Hedge Fund herding breaks apart, there are a lot of surprises, for anyone long anything with strong market correlation, one of the nastier surprises tends to be intraday or gap down moves that take out several months of longs in a flash, I'd be careful if you are in that category.