Stocks Gain Ground While U.S. Dollar Gets To Multi-Week Lows
S&P 500 futures are up in premarket trading although they have lost some ground in recent hours.
Fed officials have made everything possible to convince the market that the Fed will not decrease stimulus anytime soon, and the stock market gained solid upside momentum. While inflation is still a threat, traders focused on comments from Fed officials and bought stocks after the recent pullback.
Meanwhile, the U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, managed to get below the psychologically important 90 level and tested the support at 89.75.
Weak dollar provided significant support to silver and gold price today. Gold managed to get above the resistance at $1865, while silver traded as high at $28.75. Gold mining stocks, together with silver mining stocks, had a very strong trading session on Monday, and they will likely gain additional upside momentum at the start of today’s trading session.
Brent Oil Tests The $70 Level
Brent oil managed to get to the $70 level as traders focused on the driving season and the gradual reopening of European economies ahead of summer. Meanwhile, WTI oil made an attempt to settle above the $67 level.
Oil continues to move higher despite problems with coronavirus in India as the market believes that we have already seen the worst. In addition, OPEC+ deal continues to provide significant support to the market.
Energy-related stocks have recently managed to get close to yearly highs, and it looks that they have a good chance to gain additional upside momentum.
Housing Starts Declined By 9.5% In April
The U.S. has just released Building Permits and Housing Starts reports. Building Permits increased by 0.3% month-over-month in April after growing by 1.7% in March compared to analyst consensus which called for a decline of 0.9%.
Housing Starts declined by 9.5% month-over-month compared to analyst consensus which called for a decline of 2.8%. It should be noted that Housing Starts have been volatile this year but they remained close to multi-year highs.
For a look at all of today’s economic events, check out our economic calendar.