As liquidity started to come back into FX markets this evening, it is very clear that humans and algos are reacting to every headline, rumor, and bloviation from Europe. In the last two hours, as this chart of EURUSD shows, while the range is small, the reactions are telling. It does appear from the EUR ramps that no-news-is-good-news for now - though evidently, the facts behind that 'no news' paint a different picture. As S&P 500 futures just opened, so EURJPY was ramped 70 pips to hold the only policy tool the Fed has left at unch (for now).
EURUSD
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and the second S&P 500 futures opened (looking like they should gap down 10-15 points based on Treasury futures and FX carry), so 'they' ramp EURJPY 70 pips to save the day...
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As ES, FX, and Bonds remain divergent... (the chart above is shown in the blue oval below!!)
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UPDATE: S&P 500 Futures ramped to take out Friday's stops...
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Charts: Bloomberg