Early FX Indications: EURJPY Slide Implies 15 Point Futures Drop At Open
In a world in which only the central banks' balance sheets matter, and everything, when stripped of its product complexity, is simply a derivation of a cheap money carry trade, as can be seen on the chart below showing the correlation between the the ES and the EURJPY which have become interchangeable...
... then the futures open in 4 hours should be interesting following the early weakness in both EURJPY and USDJPY.
The AUDJPY is having an even worse day following Saturday's news of a big export miss in China:
Interesting because the implied 15 point ES drop in futures as of the early indications...
... is hardly the large enough drop that is needed to once again the GOP in either the House or the Senate to scramble and get a deal done, following the recent two-day epic surge in the market on hopes that deal concerns would no longer be an issue.
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