By FX Empire.com

A strong wave of pessimism spread across global markets by the start of the new week, where jitters from Europe continued to dominate markets amid the lack of details in the EU debt deal, while the Bank of Japan intervened in the currency market to weaken the Yen, which provided the U.S. dollar with huge bullish momentum against major currencies.

Moreover, Canada released the Gross Domestic Product estimate for the month of August, where Canada’s GDP expanded by 0.3% in August, better than median estimates of 0.2%, while compared with a year earlier, Canada’s GDP expanded by 2.4%, also better than median estimates of 2.2%.

Nonetheless, the Chicago PMI came out to spread pessimism again in markets, where the Chicago PMI index expanded in October by 58.4, worse than median estimates of 59.0, which sent equities, commodities, and major currencies lower, while the U.S. dollar gained more momentum.

The U.S. dollar was sharply higher against a basket of major currencies on Monday, where the U.S. dollar index was trading at 75.96, compared with the Friday’s closing level at 75.09 after opening with a huge upside gap. The Euro fell sharply against the Dollar, where the EUR/USD pair traded at $1.3989, compared with the opening level at $1.4138, the British Pound also fell against the Dollar, where the GBP/USD pair traded around $1.6048, compared with the opening level at $1.6110, and the U.S. dollar rose sharply against the Japanese Yen after the BOJ intervention, where the USD/JPY pair was trading at 78.00, compared with the opening level at 75.76.

Stocks in the United States fell by opening on Monday, as the Dow Jones Industrial Average was lower by nearly 1.10% to trade around 12,097, while the S&P 500 index was down by nearly 1.20% to trade around 1269. European stock indexes were also lower before closing on Monday, where FTSE 100 was down by nearly 1.50% to trade at 5616 and the DAX was down by nearly 2.25% to trade around 6204.

Gold prices were fell on Monday to trade now around $1722 an ounce and crude oil prices also fell to trade around $92 a barrel.

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