After trading modestly firmer this morning and trading back and forth up or down a few tenths of a percent, US equities are starting to lose ground in material fashion as the afternoon wears on. The S&P is down nearly 0.7% as we write.
EUR/USD has pulled back to the 1.2680 level as equities dip but USD/JPY maintains a solid footing, making fresh session highs in the last few minutes at 93.46. One bank just sent around some research showing the JPY correlation with stocks has gone almost inverse in the month of February and that USD/JPY is now correlated with a rise in the VIX, the equity market volatility measure. As volatility rises, USD/JPY rises.
94.63 remains key resistance; stops lie around the 94.70 level. Exporter offers remain at 94.50.
