UPDATE: EURJPY -150pips
Between FX carry-based risk-off from the looming government shutdown in the US and the debacle that has become Italian politics, the EUR is getting pummeled out of the gate. EURJPY is down 100 pips - well below Un-Taper levels from 2 weeks ago and EURUSD is fading fast (down almost 50 pips). The EURJPY move implies a notably lower open for S&P futures. We suspect, given the 28-month highs in EUR net longs, that this drop may get bigger by the time Europe opens...
FX markets pricing JPY carry off and EUR weakness...
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and ths situation is likely to get worse as EUR Net Longs are at 28-month highs...
which does not bode well for S&P futures open...
[3]
Charts: Bloomberg