U.S. Stocks Press Higher
With a probable Trump impeachment looming for later this week, U.S. stocks are pushing fresh all-time highs. At the midpoint of the Wall Street trading day, the DJIA DOW (+85), S&P 500 SPX (+5), and NASDAQ (+7) are all trending to the green. The bullish sentiment is a bit surprising given today’s quiet news cycle. However, bidders continue to pile on the late-2019 rally in the hopes of forthcoming gains for early 2020.
On the economic calendar front, housing data from November is leading the charge. It appears as though a relaxed FED monetary policy is tempting developers to become active. The metrics from November are well above seasonal expectations:
Event Actual Projected Previous
Building Permits (Nov.) 1.482M 1.410M 1.461M
Housing Starts (Nov.) 1.365M 1.345M 1.323M
Industrial Production (Nov.) 1.1% 0.8% -0.9%
In addition to solid gains in the U.S. construction industry, Industrial Production (Nov.) came in 2% higher month-over-month. While only a secondary metric, the figure suggests that Q4 GDP 2019 may raise a few eyebrows when released in early 2020. For now, stocks are continuing their march north and are attracting more and more institutional bids.
Stocks Rally, Safe-Havens Firm
It looks like stocks are not the only beneficiary of today’s action. Safe-havens are holding firm, led by modest gains in the Japanese yen and Swiss franc.
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Here are two levels to keep an eye on over the next 24 hours:
- Resistance(1): Swing High, 109.72
- Support(1): Daily SMA, 109.00
Overview: With the U.S. House of Representatives in the process of completing Trump’s impeachment, we may see some near-term action in safe havens. While the odds overwhelmingly favor Trump being impeached, the markets shouldn’t be too surprised when the vent comes to pass.
However, a formal impeachment is a rare thing. It will serve to destabilize U.S. politics until a Senatorial verdict is rendered. In the event we see the House pass articles of impeachment on Wednesday, the USD/JPY and USD/CHF will be in a position to extend today’s early bearish action.
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