The DXY minibounce from the 75 support level is being tracked by 10 Year Treasurys tick for tick. The only outlier is the equity market where to say there is no volume participation would be an overstatement. The VIX is meandering somewhere in between the SPY and the USTs. All in all, the FX and the bond markets are once again ignoring the shallow equity melt up which is as produced as the President's daily TV appearances.
In the FX realm, the Euro, JPY and the AUD are trading in lockstep, while the cable has grown a mind of its own. Curiously, recently we have seen major divergence by both the Yen and the Pound, which have both decoupled from broad USD weakness, er, action. In essence the global FX market is now a derivation of German exporting and US importing (or, more vividly, of Bernanke pitching and Trichet catching). With US consumers unable to wait to load up on Porsches (wait for the average Goldman bonus of $750k/person to hit) and printing presses made in Heidelberg, the optimists on a US-Deutschland bilateral world may just be on to something.