By Chris Becker
The USD flexed its muscles overnight as bets on the direction and timing of the Fed’s interest rate agenda coupled with a probable taper in the ECBs QE actions firmed, sending gold to the floor, bonds selling off and the majors down against King Dollar, while stocks fell only slightly. December is now the month of choice for punters wondering when the next Fed rate rise will be, good timing going into the disgusting, but important consumer orgy over Christmas.
Recapping Asia’s session yesterday, where the Shanghai Composite reopened after a holiday and did 2/5ths of nothing, rising a few points and settling on terminal support at 3000 points, which continues to firm as resistance on the daily chart. A solid close below that level will see price likely to retrace down to previous support/congestion at the 2800 point zone as momentum remains negative in this long running bear market:
