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USD Strength Stuns US Stocks Into Morning Nosedive

Submitted by Tyler Durden on 10/28/2013 08:48 -0400

Across the board the USD is rallying against the majors (having once again tested 17 month low resistance in the USD index). Much of the strength is coming from EUR weakness as excess liquidity in the eurozone drops to a fresh two-year low (prompting talk of renewed liquidity injections or LTROs). This has knocked US and European stocks notably lower from overnight highs leaving S&P futures an odd shade of red in the pre-open. Treasury yields are also pressing higher in the last few hours along with Commodities.

USD Index bounces off 17 month lows as EUR weakness dominates...

and US equity ftures have dropped over 10 points from overnight highs...

as EURUSD weakness (and implicitly EURJPY) drag stocks lower in US and Europe...

Charts: Bloomberg

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Mon, 10/28/2013 - 08:49 | 4097089 unwashedmass

ben will have this fixed by 9:30. not to worry.

Mon, 10/28/2013 - 08:50 | 4097097 Headbanger

Ben who?

Mon, 10/28/2013 - 08:53 | 4097110 TeamDepends

Moshe Ben Yellen

Mon, 10/28/2013 - 08:57 | 4097120 Newfie

<---------Pinky

<---------Brain

Mon, 10/28/2013 - 09:00 | 4097132 GetZeeGold

So we just need to print more?

Mon, 10/28/2013 - 08:57 | 4097121 slotmouth

I must be reading these charts wrong. Isn't the current price of the S&P always supposed to be the highest point on the chart? Perhaps ZH has made an error somewhere.

Mon, 10/28/2013 - 08:55 | 4097115 Stackers

EURUSD weakness ? You need to pull that time scale out a little farther on that chart there Tyler. The euro is anything but weak and if anything is simply bouncing off multi-month highs.... for now.

Mon, 10/28/2013 - 08:51 | 4097101 Bosch

I was going to say it will be green by 10:15 so don't worry.

But you're probably right.

Mon, 10/28/2013 - 10:13 | 4097387 Bosch

10:12 I was off by 3 minutes

Mon, 10/28/2013 - 08:54 | 4097109 yogibear

Yawn, it's been buy the dips for years now.

Monkey pushes the buy button at the bottom of the upward trending channel.

Mon, 10/28/2013 - 08:50 | 4097090 hangemhigh77

Ben is printing like crazy to keep the "market" higher because the "market" only goes UP. Buffet has to make a payment on 5 of his yachts today.

Mon, 10/28/2013 - 08:50 | 4097092 LawsofPhysics

"taper" - /s

Mon, 10/28/2013 - 08:53 | 4097107 Devotional

tape(r)worm.

Mon, 10/28/2013 - 09:00 | 4097135 iLiquid

in your braiiiiiinz!

Mon, 10/28/2013 - 08:52 | 4097094 Devotional

-0,06% is a kapow?

Mon, 10/28/2013 - 08:55 | 4097108 LawsofPhysics

Indeed. the yeild on the 1-month bond is back to 0.02% - "winning".

Mon, 10/28/2013 - 08:51 | 4097102 B2u

Time to increase QE from 85 billion to 170 billon...

Mon, 10/28/2013 - 08:54 | 4097105 SheepDog-One

Wash, rinse, repeat 10 trillion times.

Mon, 10/28/2013 - 08:54 | 4097113 Bosch

In other news on my page in the "Articles and Offers from Around the Web" link section I'm getting a link to & thumbnail picture of Alana Blanchard and her ass, so much thanks for that.

Mon, 10/28/2013 - 09:23 | 4097211 BlueCollaredOne