• Oil prices edge lower for a third straight day in a severe correction. 
• Traders are running for the hills while recession fears emerge. 
• The US Dollar Index trades sharply lower and enters a correction phase. 

Oil prices are sinking over 2% on Monday, with markets not getting a break after the turmoil at the end of last week. The Japanese stock market performance was a sign on the wall with its worst performance since 1987, with the Nikkei index sliding over 12% lower. Markets are scared that demand will start to shrink from here after a trifecta of very disappointing US data last week lit the fuse around recession fears. 

Meanwhile, the US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is receiving one gut punch after another. In normal risk-off movements, the Greenback is considered to be the safe haven. Though, as it is the same US data that is sparking that risk-off, it does not make sense as an investor to hold on to that cash anymore and park their investments in safe bonds, with the outlook that those high yields are soon to come to an end after US Federal Reserve Chairman Jerome Powell opened the door for an interest rate cut in September. The question for this week is if markets are over-exaggerating, and this is an ideal buy-the-dip moment on all fronts