The deeper layer to it: Euro Breaks $1.40 Support

From Zerohedge: "Time to recalibrate all those long stock-weak dollar correlation engines."
Euro Breaks $1.40 Support

It's not a Dollar weakness-Stock Strength correlation. But then in a way it is.

Let me explain the "mechanism": Creditors of Dollar denominated debts want to swap the stuff for non-debt securities like American equities.

The mechanism doesn't involve people from EU in any massive way as they are not the main creditors of Dollar Debts (Far East).

So the mechanism doesn't "work" with Dollar strength against Euro.

The deeper layer to it: Euro Breaks $1.40 Support