U.S. Stocks Rally To Open Week

It has been a strong open to the trading week for U.S. stocks. A bit over the halfway point of the Monday session, the DJIA DOW (+160), S&P 500 SPX (+27), and NASDAQ (+91) are all well into the green. Hopes over the future of U.S./China trade is boosting sentiment, as is the relatively vacant economic calendar.

However, there were a few secondary economic metrics that were released during the premarket hours. Here is a quick look at the highlights:

Event                                                                      Actual        Projected     Previous

NY Empire State Manufacturing Index (Dec.)     3.5                  4.0                    2.9

Markit Manufacturing PMI (Dec.)                         52.5                52.5                  52.6

NAHB Housing Market Index (Dec.)                      76                    70                      71

All in all, this group of metrics doesn’t mean a whole lot. But, things appear to be looking up for the U.S. real estate market and manufacturing is stable. U.S. stocks are responding to the positive tone and are posting strong Monday returns.

U.S. Stocks On The Bull, USD Lags

While things have been positive for U.S. stocks to open the week, the Greenback is struggling to find solid ground. Rates are slightly negative across the majors, as indicated by the EUR/USD daily chart below.

Here are a few levels to keep an eye on as the forex session winds down:

• Resistance(1): Triple Top, 1.1171-75
• Support(1): Daily SMA, 1.1082

Overview: Following the supercharged news cycle of last Friday, the EUR/USD put in a hard test of the daily Triple Top pattern at 1.1171-75. Since that time, sellers have won the battle, driving rates down more than 50 pips. At this point, it appears that forex players are taking a wait-and-see approach to the markets ahead of next week’s holiday break.