US Equity Futures Levitate As Yen Fireworks Continue; All Attention Still On Scotland

While overnight US equity futures have done nothing notable, what everyone’s attention has been fixed on, in addition to the GBP and the read-through to all things UK-ish ahead of the Scotland independence referendum, is the sudden flare up in USDJPY trading and volatility, which exploded by some 100 pips in the past 24 hours hitting fresh post-2008 highs, on what appears to be a major capital reallocation move (it surely is not driven by any news) and/or forced squeeze. What is more perplexing is the change in correlations signals, because while until recently the USDJPY was synonymous with the E-Mini, and thus the S&P, as of late the USDJPY pair has moved tick for tick with the 10Year yield: almost as if the NY Fed’s favorite HFT trading shop was instructed to change its vast array of signal inputs away from the S&P and to force a gentle levitation in the 10Y.
That said, with little material news on today’s radar, and with barely any newsflow even registering when it comes to discounting prices in centrally-planned markets, perhaps it is fitting that today’s biggest event is the “prop” breaking news update of the iPhone 6 release. Supposedly a clip of the phone has been leaked and can be seen below. If this is indeed the end product, there may be disappointment for some.

This post was published at Zero Hedge on 09/09/2014.