UK Chancellor scraps the budget and Netflix earnings are due

Netflix =>The stock rises to $245

BTC/USD => The crypto rises to 19.5k

EUR/GB => The pair falls to 0.8650

Netflix Q3 earnings preview

Netflix is due to report Q3 earnings after the close today. The share price has fallen over 60% across the year to date, underperforming the broader market by a significant margin. Given the massive fall in the share price, the assumption is that the growth story is over at Netflix, but that is not necessarily the case. The new ad-supported tier could help the streaming giant grow revenue, as could measures preventing account sharing. Expectations are for subscriber numbers to rise by 1 million after two straight quarters of declines. Meanwhile, EPS is expected to be $2.17 on revenue of $7.84 billion. Down from EPS of $3.19 on revenue of 7.48 billion a year earlier. 

Where might Netflix’s share price go?

Netflix has traded relatively range-bound over the past few weeks, limited by the low band of $204 and the upper band of $250. The rise on the 50 sma, combined with the bullish, could keep buyers optimistic of further upside? Buyers need to break above $250 to expose the 200 sma at $285. If the price moved over the 200 sma would be the fust time since January 5th. On the downside, sellers could look for a move below $204, which could open the door to $164, the 2022 low?

 BTC/USD rises, Mastercard news helps

BTC/USD rose 1.4% over the past 24 hours, supported by a renewed demand for riskier assets. ETH/USD also benefitted from the risk-on mood, rising above 1300. Cryptos tracked equities higher, with the Nasdaq and the S&P500 jumping 3.4% and 2.6%, respectively, despite ongoing concerns over persistently high inflation and a recession. With little in the way of economic data, earnings have been center stage. Yesterday, Bank of America saw earnings fall less than expected. In crypto news, the fallout from the collapse of Three Arrows Capital, the crypto hedge fund, continues with the CFTC and the SEC examining whether investors were misled. Separately, Mastercard announced that it would help bring crypto trading capabilities to banks in a move that further adds credibility to the sector. 

EUR/GBP falls after Hunt rips up the PM’s mini-budget

EUR/GBP fell -0.4% on Monday after the British Chancellor ditched Prime Minister Liz Truss’ economic plan, a backtracked almost all of the measures set out in the mini-budget. The new Chancellor tells Parliament there will be tax rises and spending cuts to try to balance the books. The move helped restore at least some confidence in the UK economic outlook, pushing gilts and the pound higher. Today there is no high impacting UK economic data. Instead, all eyes will be on Liz Truss and whether she can cling to her job. Attention will also be on German ZEW economic sentiment data. Economic morale in Germany is expected to fall sharply to -66 from -61.9 as energy prices surge and gas rationing fears rise.

Ger. ZEW economic sentimentExpected: -66 (4.1)
Previous: -61.9

Support can be found at 0.8580 (October low) and 0.84.90 (200 sma).

Resistance for the stock can be seen at 0.8730 (June high) and 0.88 (September 16 high).



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