Is EUR strength finally weighing in on stocks?

There's a bit of a break in this year's correlation between the EUR's rising momentum and the German DAX index

So far this year, the euro is up almost 12% against the dollar. The German DAX index meanwhile is only up 6.50% year-to-date today. But up until 21 June, it was actually up by more than 12.60%.

While today's triple PMI beats in Europe may bode well for the currency, the recent strength in the euro will certainly give exporters in the Eurozone a worry or two to think about. And that will certainly weigh in on profits, eventually.

The break in the recent correlation between the EUR and DAX index is a good lesson that stocks may not always rise on positive economic outlook if the currency also strengthens a fair amount.