European Stocks to open lower

The European markets are expected to open slightly lower today and to continue to trade in tight range. Investor do not want to open large positions due to the speech from Janet Yellen on Friday. It is widely expected that she will give a direction to the markets when we can expect a rate rise, this year or the next.

The indices are at record levels and buying here would be risky.  The dollar continue to be stable but without any big moves. If FED mentions anything about raising rates then dollar price may skyrocket due to the fact that its price has long been suppressed. This is caused partly by raise in commodities, Gold the indices and mainly by the expectations of no rate raises. The last data has shown that the economy is moving forward even that the movement is slow.

The price of Oil did receive an impulse for long during the American session and this is due to the fact that Iran is showing signs of willingness to cooperate with OPEC during the meeting scheduled for next month.

FTSE to open around 6,848, DAX to open around 10,585, CAC to open around 4,410.

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