It varies. They have been very highly correlated lately. One could just as easily say the ES is inversely correlated with the US Dollar index. That has not always been the case. In the 80's the stock market rallied hard with the dollar and historically speaking, a strong currency is good for the markets, not bad. So I think when you look at correlations you need to know what the driver is behind that correlation. I personally think the Euro and ES are going to de-couple a little bit here.
When I traded FX before, I much preferred the cross rates to the dollar pairs. Much "cleaner" price action in my opinion.
Well, Master Jedi Maverick, which cross would you choose? I am always willing to learn something, if for nothing more than to better help others.
It depends on what you are looking for. For pure momentum can't go wrong with GBP/JPY or EUR/CHF. But there are some great pairs out there that actually escape a lot of the noise of risk assets. I use to love EUR/AUD. For mean reversion types, the EUR/GBP pair is very quiet, slow moving and range bound. Not a bad thing for a leveraged FX guy!
I have traded both GBP/JPY and EUR/GBP. Thanks for letting me know I have been on the correct trail. See you next year.