Europe set for a weaker open as dollar rebounds
European stock indices were weaker on the open, led by the German DAX, which fell 0.5%, as investors digest the passage of the fiscal package by the Bundestag. Market volatility has ticked up lately, with traders reacting nervously to fiscal and economic developments.
In currency markets, the dollar rebounded overnight as traders positioned themselves ahead of the Fed’s announcement. After showing signs of strength yesterday, the EURUSD pulled back to the 1.09 level, while the Japanese yen was mixed following the BOJ’s decision to keep rates unchanged.