EURJPY Diverges from Global Equities Past Month

The familiar situation of falling European sovereign yields, rising European (and global) equity markets, and a depreciating Euro are all back in play. But for brief event-driven short covering rallies, the Euro may be in the early stages of reclaiming its role as a funding currency – look no further than the divergence between EURJPY and global equity markets (DAX, Nikkei, S&P 500) in recent days.