The markets opened up more than 100 points in the first hour of trading as investors seem content to wait out the markets this week ahead of the Federal Reserve's September FOMC meeting, where the central bank will decide whether it will hike interest rates for the first time since 2006.
Thousands of gallons of virtual ink has been spilled on the market implications of the Federal Reserve’s monetary policy meeting decision on Thursday, and we’ll undoubtedly see plenty more analysis over the next few days.
We have the "all clear" as Chinese authorities have told us their correction is over. Now we learn the Chinese central bank burned $93.9 billion in reserves last month, a record and double what they did in July.
While this week’s U.S. data doesn’t have a massive direct influence on GBP/JPY, the pair is still a good barometer of risk sentiment in the market and should react to changes in traders’ risk appetite. GBP/JPY has clearly taken a turn for the worse over the last few weeks.
This week could be another volatile one for the stock markets. Now, you may be wondering why we are concentrating on the Nikkei as opposed to, say, a U.S. index, given the sheer number of high-impact U.S. data in the week ahead.