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U.S. Stocks Set To Open Higher As Housing Starts Grow By 22.6% In July

Building Permits Increase By 18.8% In July

The U.S. has just provided Building Permits and Housing Starts reports for July.

Building Permits have increased by 18.8% month-over-month in July. Analysts expected that Building Permits would total 1.32 million while the actual number of Building Permits was 1.495 million.

Housing Starts were also better than expected. In July, Housing Starts grew by 22.6% month-over-month in continuation of the strong growth of 17.3% in June.

The reports indicate that the housing industry is rebounding fast. Perhaps, the fears of spending a new lockdown in an overcrowded city have led consumers to choose new housing options or search for more living space.

After the release of these reports, S&P 500 futures are gaining ground during the premarket trading session. New all-time highs are now in sight.

U.S. Dollar Tries To Break To Yearly Lows

In absence of ideas during the traditionally calm last weeks of summer, additional weakness of the American currency can boost stocks and push them to new highs.

The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, is currently trying to settle below the key support level at 92.50.

A move below this level will likely lead to increased downside momentum which would be bullish for dollar-denominated stocks.

Gold Is Back Above $2000

It did not take long for gold to recover back above the psychologically important $2000 level.

The key catalysts for this move were the continued weakness of the U.S. dollar and Warren Buffet’s decision to buy a stake in the leading gold miner Barrick Gold.

A bet on a gold miner is a bet on the continued upside on the gold price front. Thus, it’s not surprising to see gold above $2000 per ounce after the world’s most famous investor disclosed a position in a gold miner.

In this light, gold and silver miners are set for another positive trading session and their stocks are already gaining ground in  premarket trading.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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