EUR Inflation – Gold Eyes US ADP Data & Meta to Report
Meta => The stock trades at a 10-day high
EUR/GBP => The pair trades steadily around 0.8335
Gold => The commodity fall back below $1800
Meta Q4 Earnings Preview
Meta, formerly Facebook, is due to report Q4 earnings after the closing bell today. Revenue is expected to rise to $33.4 billion, up from $28.1 billion delivered in the year before. Meanwhile, EPS are expected to fall 1.1% to $3.84, down from $3.88 in the same period a year earlier amid tough comparisons. Advertising revenue is expected to be pressurized following Apple’s OS privacy change last year which could hurt the outlook for 2022. The market will also be looking for details surrounding the shift to the metaverse.
What’s next for Meta (Facebook)?
Meta has been trending lower since August last year, forming a series of lower highs and lower lows. More recently the price has rebounded off the falling trendline support and is extending a move higher. The bullish crossover on the MACD is keeping buyers hopeful of more upside. Resistance can be seen at 327p the 50 sma and perhaps more importantly the 100 sma at 334p. The price hasn’t broken meaningfully above the 100 sma since September last year. On the flip side, failure to break above these levels could see the price rebound lower back towards 300 round number and December low ahead of 288 the 2022 low.
Will Eurozone inflation pull the Euro lower?
EUR/GBP fell 0.20% on Tuesday after stronger than expected UK manufacturing PMIs and a mixed bag of data from the Eurozone. Disappointing German retail sales knocked demand for the euro early on, raising concerns over the health of the eurozone’s largest economy, which contracted in Q4 2021. Eurozone unemployment data painted a brighter picture, dropping to its lowest level in two years. Today, the pair is rising ahead of the release of eurozone inflation data. Analysts are expecting inflation to ease lower in January, which could take some pressure off the ECB to act. That said inflation would still be over double the central bank’s target 2% level. The ECB interest rates decision is tomorrow.
| Ger. Retail sales MoM Dec
EZ Inflation YoY |
Actual: -5.5% (6.1%)
Expected: 4.4% (0.6%) |
Previous: 0.6%
Previous: 5% |
Gold Depressed Ahead of ADP Data
Gold rose above $1800 in the previous session thanks to a weaker US Dollar and calming comments from several Fed officials. Gold had fallen sharply, last week, and the USD hit a 19-month high after a more hawkish than expected Fed meeting. Markets feared that the Fed could adopt a very aggressive approach to raising interest rates, which is bad news for non-yielding gold. This week those fears have eased slightly after Fed officials pushed back on the prospect of aggressive moves by the Fed. On the data front, better than expected manufacturing PMI boosted the USD later in the day, limiting gold’s upside. Today, Today Gold has slipped lower again, back below $1800, inflation data from Eurozone and US ADP jobs data could influence gold.
| U.S. ISM Manufacturing PMI
ADP payrolls Jan. |
Actual: 0.3% (0.5%)
Expected: 207k (600K) |
Previous: 0.8%
Previous: 807k |
Support can be found at 1884 (January 7 low) and 1881 (January 28 low).
Resistance for the pair can be seen at 1808 (yesterday’s high) and 1830 (January 21 low).
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