US indices continued to decline on Friday. Dow Jones slipped 0.9%, while both NASDAQ and S&P 500 lost 0.8%. Most likely, this happened because investors are preparing for the upcoming Fed meeting next week.

As for the Asian markets, indices moved in different directions this morning. Japan indices fell 1.2%, while China indices rose 0.4%.

The oil market also posted a decline on fears of slowing demand in China and the US. Prices fell 1%, so Brent traded at 72.90. On the bright side, OPEC members met over the weekend, during which they finally managed to overcome differences. They agreed to increase production by 400,000 barrels per day starting August.

In China, officials have announced plans to contain the prices of commodities such as copper, coal and aluminum. The measures include the sale of goods from government reserves.

With regards to the world's epidemiological situation, latest data say COVID-19 infections dropped to 445,000. 48,000 of the cases came from the UK, while 12,000 came from France.

Medical experts from major US hospitals say vaccinations have reduced the risk of severe COVID by 97%, and complete vaccinations by 99%. Of those hospitalized in the United States, 97% are unvaccinated.

Going back to the markets, S&P 500 sank to 4.327 points, so its range also declined to 4.300 - 4.360.

Meanwhile, the USD index rose to 92.70, so its range is now 92.50-93.10. It is likely that dollar will continue to grow on expectations that Fed will tighten monetary policy next week.

As for USD/CAD, it now costs 1.2650 and is expected to value from 1.2580-1.2750. The declining oil prices helped dollar win against loonie, and most likely it will continue to rise to 1.2850 in the coming days, especially if it is not pushed back to 1.2500-1.2600

For EUR/USD, the upcoming ECB meeting on monetary policy will be important, as the decisions will significantly influence market sentiment. There might be no drastic changes in the policy, but there may be hints for a future change.

Conclusion: Correction may continue until the Fed meeting next week. But hitting a new all-time high is also possible, which will provoke sellers to open short positions.