Another night of waiting for Brexit to happen with central bankers adding to the volatility with their “words”. Mario Draghi said the ECB would do anything (but it won’t do that) to help inflation along, which sunk the Euro and helps European stocks, while Janet Yellen reiterated the call for “looking for growth” in the US economy before flinging interest rates up any higher. Commodities were mixed with oil getting a late bid, gold was slammed but copper surged on the LME. The USD is regaining strength against the majors on a mean reversion trade right before the Brexit vote, so that’s good for us traders wanting volatility but not those with bigger currency positions.
Recapping Asia’s session yesterday where the Shanghai Composite tried to breakout on the open but was sold off heavily in the lunch session, closing down 0.3% to 2878 points. It remains below local resistance at the previous week’s daily highs and my target at the former low at 2600 points is still firm:
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