Nasdaq rebounds and gold falls ahead of Fed Powell
Nasdaq => The stock index rises to 14100
Gold => The commodity slips to $1950
EUR/GBP => The pair steadies at 0.83
Nasdaq rises after Netflix inspired drop
The Nasdaq closed over 1.2% lower on Wednesday, dragged down by weakness in Netflix and other streaming services.
Netflix closed 35% lower after subscriber numbers unexpectedly dropped by 200k, rather than gaining 2.5 million as expected. Competitors Disney, Roku, and Discovery all saw heavy losses as well. After the close, Tesla’s impressive Q1 report has helped boost the futures.
Tesla’s results raced past forecasts as higher prices helped offset rising costs. Revenue rose to $18.8 billion, ahead of $17.8 billion expected and up 81% YoY.
Where next for Nasdaq’s share price?
The Nasdaq faced rejection at the 100 SMA and rebounded lower. Before finding support at 13750, the January 24 low, which is now the near-term support.
Here, buyers re-entered the market, lifting the price back towards the 50 sma, which is the level that buyers will be looking o recapture at 14300 to propel the price back up towards 14600. The receding bearish bias on the MACD supports further upside.
Gold falls ahead of Fed Powell.
The gold price rose 0.45% yesterday as the USD slipped lower.
Russia test-fired a nuclear-capable intercontinental ballistic missile as a warning to Europe and a move that raises the prospect of a nuclear escalation of the Ukraine conflict.
Today, Gold prices are heading lower ahead of a speech by Federal Reserve Chair Jerome Powell, who could provide more clarity on the path for monetary policy normalization. A hawkish-sounding Powell could boost the USD and pull non-yielding, dollar-denominated gold lower.
EUR/GBP looks to EZ inflation
EUR/GBP rose 0.1% in the previous session after the euro was boosted by higher than forecast German factory-gate inflation, PPI, and by hawkish comments from the ECB policymaker Kazaks, who suggested that the ECB could hike interest rates as soon as July.
German official Joachim Nagel repeated this view of a rate hike early in the third quarter. Today the pair is holding steady after a solid performance by Macron in the Presidential election debate and as attention moves to Eurozone CPI data which is expected to confirm the preliminary reading of 7.5%. Consumer confidence is expected to fall further.
In addition to data releases, ECB’s Lagarde & BoE’s Andrew Bailey are due to speak.
| EZ CPI YoY March | Expected: 7.5% (1.6%) | Previous: 5.9% |
Support can be found at 0.8285 (February 3 low) and 0.8250 (last week’s low).
Resistance for the index can be seen at 0.8340 (weekly high) and 0.8385 (100 sma).
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