Recently, markets seem to calm down as the U.S. stocks settled higher above early low and the VIX largely shrank 5 percentage points. In terms of major currency pairs, GBP/USD dropped to 1.3220, NZD/USD was hampered to around 0.6700, USD/CAD recovered to 1.3080, while AUD/USD and EUR/USD kept consolidating near Friday's close.To get more news about WikiFX, you can visit wikifx official website.
Against the backdrop, major Asia-Pacific stock indexes were somewhat of a mixed bag with the Hang Seng Index seeing a mild gain of 0.05%, the KOSPI 200 Index swelling 0.53%, the Nikkei index losing 0.33%, the TAIEX edging down 0.02% and the ASX200 slightly decreasing 0.01%. The U.S. dollar rose in the wake of last week's strong non-farm payrolls, but eventually closed after giving up most of the advances. Monday's overall markets indicate a higher dollar in the short term.
Over the weekend, it was reported that the UK parliament has just come back from a break and was considering a series of new laws, which could derail trade talks with the EU. In addition, news received in September about the U.S. presidential election and the FED's rate decision meeting will affect the market which has been rising for half a year.
This week's outlook suggests that September's rate decisions of the European Central Bank and the Bank of Canada will put the market at risk. Moreover, as the U.S. CPI and PPI for August are about to be released this week, investors should keep eye on the future trend of the recent recovery in the country's inflation.
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