Old correlations are coming back into vogue today as EUR/JPY has linked up with equities from a directional basis today. Stocks have turned sharply lower in afternoon trade as health-care stocks in particular are dumped. The Obama budget with its big federal push into the health care sector has the market deeply spooked.
Both legs of the EUR/JPY cross are giving ground in fairly light trade as the market heads toward the close. EUR/USD trades in the high 1.2740s after stalling at 1.2780 at midday. USD/JPY is down at 98.30 from highs at 98.67.
Gold is rebounding as stocks slip, lending strength to the area of chart support around $931/933. Spot gold trades now at $944.00.