By Chris Becker
The Brexit saga could not overshadow risk appetite overnight with US stocks finally rebounding after a staid week, helped by a very strong advanced retail sales print and some “easy” Fed speeches possibly putting brakes on an unrelenting rising rate policy. Pound Sterling was slammed on the Brexit dramas, falling over 300 pips against USD as chaos seems to reign on PM May’s cabinet, but this volatility did not extend to the other majors.
Recapping Asia’s session yesterday where the Shanghai Composite closed 1.3% higher to 2667 points, coming back strongly after recently retracing and now building above key support at the 2600 level. The daily chart shows the potential of a slowdown in this long standing correction, but price must hold itself above 2600 here to translate that into a recovery rally:
