Summary:

• Stock markets in Europe recover after recent slump

• Bitcoin posts gains at the beginning of the week

• US and UK inflation figures in this week’s calendar

In terms of macroeconomic releases Monday is calm as usual. Stock markets in Asia and Europe halt declines at the beginning of the week. AUD is the strongest currency amid G10 basket, while the NZD is the weakest one. Gold trades slightly higher, whilst oil posts significant gains.

The last week saw a gargantuan surge in both realized and implied volatility which in turn sent equities lower, however, other markets such as currencies or bonds turned out to be much less volatile during the whole week. Putting all of that together one may draw conclusions that the latest sell-off could have been just a short-lived one as it did not spill over elsewhere.

Bitcoin has begun the new week with a moderate gain despite quite downbeat revelations from China, however, no details have been revealed as of yet. According to the Chinese People’s Daily it’s necessary for the country to cool down Bitcoin investments.

Asian equities kicked off the week in the mixed moods following Friday’s gains on Wall Street. European benchmarks opened significantly higher on Monday morning with the broad rebound in all industry groups. Chancellor Angela Merkel stated she is willing to serve full term after talks about finding successor spurred following the coalition talks.

We have just entered the new trading week with the weaker US dollar as it’s by far the most beleaguered currency among its major peers. The Bloomberg index is trading 0.3% lower while the largest gain can be found in the common currency which is nearing a 1.23 handle in early trading on Monday.

As Monday’s economic calendar is empty it is worth to take a look at the scheduled readings in the upcoming days. The major event this week is US inflation reading on Wednesday. Apart from that, GBP traders may want to stay cautious as UK CPI and retail sales data is about to be released this week.