We are all, of course, following the EUR/USD quite closely. Here's what I find fascinating this morning: even though the EUR exhibited even more strength last night than it did the prior night, the positive effect it had on the /ES wasn't as substantial. Look at this chart:
The blue line represents the /ES and the black line represents the EUR. This is a minute bar line graph over the past couple of days.
They are obviously very highly correlated, but notice how the blue line doesn't surge nearly as much today as it did yesterday. So even with the tailwinds of the EUR, the /ES is subtly losing steam. I would also add that, as I'm typing this, the EUR is quickly weakening.
It'll be another interesting day, to be sure.
