Intraday FX Heatmap: Carry Unwind

Rather simple day in FX land: in a word (or two) - risk off. The Yen is surging against all currencies, the Euro is weaker against pretty much everything (thanks Greece), with the USD one again a conduit between the JPY and the EUR carry. An interesting observation on currency trading via an email in our tip box:

• Hedge funds and props of all stripes switched to FX trading en masse aka going long USD vs. anything else and shorting EUR against everything.   That includes "not quite so smart" money -- insurance companies and bond investment outfits.
• HFTs and stat arb quants run arb strats on DXY, int rates, equities against FX moves creating totally surreal enviroment where short term histrorical correlations mean more vs. anything.

The entire stock market is now one big liquidity/carry trade.

USD:

JPY:

EUR:

GBP:

Comments

[nhsadika]

EUR and JPY maps are mislabeled

[Lord Peter Pipsqueak]

I'm looking at AUS/USD,weakness there seems to be the key to this bubble unwinding.

[Anonymouse]

Pardon my ignorance, but how so you mean.  Are you saying that the AUD should weaken against dollar?  How will this cause bubble to pop?

I ask as I am thinking of putting money into EWA, and have not yet come to a conclusion about exchange rate AUDUSD

[Trading Nymph]

I love those Heat Maps...where do you get them...they are so cool. We saw the start of the unwind when the Official GDP data and State council annoucement came out from China...even though GDP already leaked.

[Missing_Link]

You mislabeled the graphs, I think.  The EUR and JPY should be switched.

[Booky28]

No it looks right to me.

I think you guys are reading it wrong.

Tyler, please confirm.

[trav7777]

Get your real assets

[A Man without Q...]

 Today, NFP and industrial production both miss and market doesn't care.  Philly Fed comes in slightly ahead the market leaps.  This time in 12 months, we will have no job, our house will be worth nothing, we won't be able to pay to fill the car with gas, but we will be millionaires courtesy of owning 10 shares in Ambac.  

Bernanke must be a big fan of "A Second Life", because he's turning this into a virtual reality...

[tmosley]

Show a heat map for gold/silver.  

[Stuart]

The CAD vs US$ makes no sense.   The loonie just broke a buck yesterday against the US$ yet it shows as weak on the map.   

[Lord Peter Pipsqueak]

Pardon my ignorance, but how so you mean.  Are you saying that the AUD should weaken against dollar?  How will this cause bubble to pop?

I ask as I am thinking of putting money into EWA, and have not yet come to a conclusion about exchange rate AUDUSD

Anonymouse,My thinking is the whole worldwide economic bubble is directly related to the price of commodities,and since Australia'a economy is heavily dependant on the resource and commodity sectors,it would make sense for any weakening of that to show up in its exchange rate,also weak dollar = higher market so lower AUS/USD = weaker worldwide demand for commodities and stronger dollar which is bad for the market.

Also,fx markets less likely to be guided by the "invisible hands" of the Fed.

Don't pay too much attention to my ramblings though, you are asking someone who is short the Nasdaq 100 and currently smashing his living room to pieces.