Market wrap before the U.S. session's bell

The sentiment on the stock market remains positive. Moreover, the so-called 'fear index' CBOE Volatility Index is on historically low levels, which shows that no one on thinks that it is time for a correction, no one seeks shelter against higher volatility or decline in the indices. This is why we think that the indices will continue to grow with slow and steady pace in the short term period of time. This will have negative effect on the JPY and Gold.

Hence fore the risk appetite is on play, which means that the possibility for the Gold to decline is even bigger. Technically speaking the short term formation for the precious metal is negative.

The risk appetite will lead to a decline in the Japanese Yen, especially against the greenback.

It is very likely to see rise in the chances for additional rate hikes from Fed in June's session, caused by the getting better data from Europe. This will lead to a strong dollar.

The common currency is likely to remain strong as well. The reason for that is the profit taking from the outcome of the French elections. It is time for new speculations, that ECB will finish their QE program this September. Short term speaking, the EUR may remain weak for a couple of days because of the profit takings.

The stock markets in U.S will open slightly higher today, generating the positive mood from Europe. The leading sector will be the Oil, as the commodity pair some of its losses from last week and the bank sector, which will benefit the most from another rate hike in the U.S.

We remain positive against the technology giants GOOG, Aapl, Amazon, MSFT.

Stefan D. Angelov - Head of Stocks Trading

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