We had seen volatility rise nearly 80% in just more than two weeks (according to the VIX index) due to the Greek crisis and the stock crash in China, vaulting from about 12% to 20% during that time.
The third bailout agreement for Athens meant a relief rally, and a context of lower volatility (VIX: 13.9 vs, 16.8). The strong appreciation of the dollar (from 1.12 up to 1,10) reinforced by Yellen’s words on Friday made gold prices fall by more than 1%.
Things to watch today: real activity and Q2 GDP data for China (Wednesday), with new loans, money growth and trade all coming in stronger than market expectations so far. In the US, we have retail sales (today), IP (Wednesday) and CPI (Friday). In the UK, CPI and labour data will be important as the last wages number led to higher rates. There are also ECB (Thursday) and BoJ (Wednesday) meetings.