by Chris Becker
It was all about the Fed last night as the latest minutes were released from the previous FOMC meeting and the USD responded with a bang! Basically, June is now live for a rate hike from the Fed, which sent US bank stocks up, Treasury yield curve flatten and all the major currencies down in spades. US stocks were flat while European bourses were supported by the lower Euro. The other major release was the weekly DOE oil/gas inventory which surprised on crude oil inventories – up – and on gasoline – down, which supported prices in WTI but not Brent as other industrial commodities and gold fell on the resurgent USD.
Recapping Asia first where the Shanghai Composite fell over 1% straight down to very temporary support just above 2800 points, as the bears take charge. Today I’ll be watching the previous intraweek low for a complete breakdown here with my target the former low at 2600 points:
