Published at 10:54 (GMT) 29 Dec
EUR/USD and equities had a relationship that was very credible until the middle of Dec. The turmoil related to the EUR in the form of the Greek fiscal problems and even the Austrian banking noise sent EUR spinning lower for some time and the relationship between equities and EUR/USD broke down. While the focus has turned to the holidays and potential year-end flows the EUR's problems have been pushed into the background, not too far into the background, and the relationship between EUR/USD and equities is building credibility once again, but slowly and not to the point where traders and speculators will be comfortable using one market to give direction to the other. For now, the cross market pressure can't be ignored, but it is not working as well as it once did. M.B.