by Chris Becker
Last week’s price action on risk markets can be characterised as sideways consolidation at best for stocks, as the USD continues to slide in value against the major currencies on a continued dovish mood emanating from the Federal Reserve. Euro and Yen are appreciating, thus putting pressure on their domestic bourses while commodity prices continue to decline although oil prices are remaining volatile both intraday and intramonth. As we pass through the NFP period of the calendar, this week will be loaded with economic data, namely CPI prints from the major economies and finishing with the (absurd) GDP print from China.
Recapping Asia’s session on Friday where the Shanghai Composite snapped back its recent rally, to be below 3000 points once again. Zooming out to the weekly chart we can see the deflation of this monster bubble with the occasional bear market rally continues apace with the downtrend line being respected in full:
