Euro/Yen vs. S&P 500 Index Correlation

Here is a comparative chart to illustrate how the S&P 500 and the Euro are in lockstep via risk carry trade in the EUR/JPY.  Similar correlation can be observed in the EUR/USD spot or FXE.  Correlation between these markets tend to roll in and out, but for now currency trade is DOMINATING the market, and tipping its hand at the same time.

Note: S&P 500 Index is the RED line and the EUR/JPY cross is the BLACK line.

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