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European macro data surprises have dropped into negative territory for the first time in 3 months as the *last 3 weeks have seen the biggest drop in 19 months*. Of course, none of that matters, as EURJPY was bid all the way through the European day, lifting European stocks and the all-important Italian and Spanish bond markets. Markets were relatively thin still today but just as we have seen around the world (most specifically in Japan and the US recently) *equity markets push on ahead despite the collapse in macro data* - but we've seen this before a few times (and it did not end well)...
European macro data has plunged in the last 3 weeks...
but EURUSD appears to expect European macro data to deteriorate even further relative to the US...
but it appears the US and Europe have recoupled (remember its never a decoupling - it's a lead-lag relationship)...
But it is stocks that remain aloof to macro reality - as they do around the world (but we saw this before in Q1 2011)...
and today in Europe...everything is fine...
Charts: Bloomberg
*Bonus - Europe is not the only 'disconnected from reality' market...*
Reported by Zero Hedge 1 day ago.
Clik here to view.
European macro data surprises have dropped into negative territory for the first time in 3 months as the *last 3 weeks have seen the biggest drop in 19 months*. Of course, none of that matters, as EURJPY was bid all the way through the European day, lifting European stocks and the all-important Italian and Spanish bond markets. Markets were relatively thin still today but just as we have seen around the world (most specifically in Japan and the US recently) *equity markets push on ahead despite the collapse in macro data* - but we've seen this before a few times (and it did not end well)...European macro data has plunged in the last 3 weeks...
but EURUSD appears to expect European macro data to deteriorate even further relative to the US...
but it appears the US and Europe have recoupled (remember its never a decoupling - it's a lead-lag relationship)...
But it is stocks that remain aloof to macro reality - as they do around the world (but we saw this before in Q1 2011)...
and today in Europe...everything is fine...
Charts: Bloomberg
*Bonus - Europe is not the only 'disconnected from reality' market...*
Reported by Zero Hedge 1 day ago.
