USD/JPY may be losing its influence on Stocks
Stock-Markets / Stock Markets 2016 Apr 22, 2016 - 06:22 PM GMTThe USD/JPY influence on the SPX may be waning. ZeroHedge reports, “Kuroda, we have a problem. Following rumors overnight, USDJPY is obediently being bid (Yen weaker), with its biggest day since January and pushing above 111 (highest in 3 weeks). Normally this would be all the US equity needed to spike ignorantly to new highs... but it's not...
Standard 200 pip vertical ram on nothing but rumors... but stocks ain't buying it...”
Could it be that we are seeing the final disconnect with the Yen carry trade? Or is it that SPX needed to complete a fifth Wave, leaving the decline as an impulse? Don’t be surprised to see a retracement rally this morning.
The Shanghai Index is struggling with its first weekly loss since late February.
Bloomberg reports, “s equities climb around the world, Chinese traders aren’t celebrating.
The Shanghai Composite Index has fallen 3.9 percent this week, the worst performance among 93 global benchmark gauges tracked by Bloomberg and the steepest decline since January. It’s not just the stock market. The yuan is trading around its lowest level against a basket of currencies since November 2014, while yields on corporate debt have risen for 10 of the past 12 days.”
The EuroStoxx Index is approaching its mid-Cycle resistance, typically the limit for a Wave (2).
ZeroHedge reports, “Mario had a bee in his bonnet yesterday morning. Apparently, the chorus of German voices pointing to the obvious—- that his policies are killing savers, insurance companies, pension funds and banks—-got his dander up:
“We have a mandate to preserve price stability for the whole of the euro zone, not only for Germany,” he said. “We obey the law, not the politicians, because we are independent.”
Are the central banks running out of ammunition?
Regards,
Tony
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