EURUSD and S&P 500 Divergence Will Collapse, Watch EURCHF and USDJPY
We are still seeing mixed signals on underlying risk trends, and the resolution of this disparity will ultimately lead some markets to reverse. The question is whether the convergence will be dramatic or measured. Using EURUSD and S&P 500 as our measuring definable points, we have seen the benchmark equity index's rally stall immediately after overtaking multi-year highs while the world's most liquid currency pair trends lower in favor of the safe haven dollar. We discuss the relevance of this divergence and the trading scenarios that lie before us. In addition, we cover EURCHF's opportunities ahead of the SNB rate decision as well as the diehard bull trend for USDJPY.
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