Macro Morning

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By Chris Becker

The USD and Treasuries rose in lockstep as US stocks retreated due to the retreating oil price overnight as tech stocks took a tumble following their too-fast rise in the previous session. Without much economic news to go on, risk markets are reacting to political and other macro events. A speech by Governor Carney at the BOE saw the pound drop nearly one percent on Brexit concerns while commodity prices dropped, dragging the resilient Aussie down ever so slightly.

In Asia yesterday the Shanghai Composite closed down 0.2% at 3140 points, still unable to break out significantly above key support at the 3100 point level. Obvious resistance here at 3150 needs to be cleared soon as price is clustering just below the 200 day moving average, indicating the bears remain in charge:

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