By Chris Becker
The release of a very dovish set of Fed minutes from the latest meeting had traders reaching for the buy button overnight, confident that interest rate path might not be as a parabolic (or hyperbolic) as some are expecting, taking the ease of the rise of the USD in the process. This helped dissipate disappointment in Europe, where German factory orders did not expand as expected and further financial contagion is spreading amongst banks are other institutions as the Brexit fallout widens. Pound Sterling continued to tumble regardless, while Euro and other majors stabilised as Yuan yesterday weakened again as the fix resumes its downward trajectory.
The Shanghai Composite had another “slowly, slowly does it” session yesterday, itching a little higher above 3000 points, up 0.4% to 3017 points. I’m still targeting as high as 3400 on further momentum, but for mind this is a fool’s rally, so position size will dictate here:
