FX Impact on Equity Markets

Tuesday 16th January - Something a little different

Just as I have for the SP500 we can track large batches of FX crosses.

Here we have the major USDx that I track.

I do the same across everything so all the big ones but also EURNOK, GBPCNY AUDSEK etc etc. Here we have the Median Signal Strength of the baskets.

USD finds itself actually in a very similar spot to large swaths of equities going into Halloween. It is at a point where its difficult to get any worse.

As ever under the surface matters. Nothing is created equal recent USD strength has come against Asian and Europe FX.

Where we were just 2 weeks ago..

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Equities can be treated as FX trades.

You may be used to seeing this EUR/USD as an FX pair at its most basic level is it any different to this SPY/USD?

Depending on how you answered that question will drive how you think about the second…