Intraday Market Thoughts

US Data Upside vs the Rest; Latest Premium Trades

by Ashraf Laidi
Jan 5, 2012 18:15

Todays ISM show US PMIs the only G10 nation to avoid contraction in this business index. Just as the cacophony of 1.0 correlations was uttered by most market players, the daily correlation between EURUSD and S&P500 falls near from as high as 0.79 in May. In fact, the last 3 weeks have seen the DAILY correlation between EURUSD and S&P500 turn NEGATIVE. This can be seen with the naked eye by charting both assets. Since late November, we mentioned the falling correlation between EURUSD & equities, signalling that euro is no longer a reflection (or a follower) of risk appetite-- a relationship, it pursued over most of the last 4 years. Direct access to today's Premium piece http://ashraflaidi.com/products/sub01/access/?a=578 Nonsubscribers can click here: http://ashraflaidi.com/products/sub01/access/?a=578

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