This morning, the S&P 500 Index e-mini futures (ES-M3) are trading higher by 12.00 points to 1636.25 per contract. It seems that the major stock indexes are catching a sharp bid ahead of the opening bell at the New York Stock Exchange. The catalyst for this early move higher is two fold. First, the USD/JPY is trading higher, this tells us that the Japanese Yen is declining lower against the U.S. Dollar. As long as the yen falls the markets around the world seem to trade higher.
Gold and silver will also decline when the yen falls against the U.S. Dollar. Traders should watch for volatility in equities such as the CurrencyShares Japanese Yen Trust (NYSEARCA:FXY), SPDR Gold Trust (ETF) (NYSEARCA:GLD), and the ProShares Ultra Silver ETF (NYSEARCA:AGQ). Currencies move commodities and stocks these days, so keep the most important currency pair on your radar.