UK inflation due after US PPI inflation cools
EUR/GBP=> The pair rises towards 0.8750
NVIDIA =>The stock falls 45% this year
BTC/USD=> The cryptocurrency rises to 17k
EUR/GBP awaits UK inflation
EUR/GBP fell 0.7% in the previous session after UK jobs data showed that unemployment rose to 3.6% but that wages also rose by 5.7%, the fastest rate since August last year. Rising wages add inflationary pressures to the economy, something that is likely to concern the BoE and fueled bets of further rate hikes from the UK central bank. Today inflation data will reveal how high consumer prices have risen. Inflation (CPI) is expected to rise further to a new 40-year high. The BoE is widely expected to hike rates again in December. Meanwhile, the euro fell yesterday despite a strong improvement in German economic confidence. German ZEW economic sentiment improved considerably in November, rising for a second straight month on hopes that inflation could soon start improving The eurozone economic calendar is quiet. Instead, Christine Lagarde’s speech could provide fresh impetus.
| UK CPI | Expected: 10.7% (0.6%) | Previous: 10.1% |
Where might the EURGBP price head to?
EURGBP failed to rise above resistance at 0.8830, the weekly high, and has fallen lower, but stays within a familiar range, capped on the lower side by 0.8720, the weekly low. The RSI is neutral at 50, giving away few clues. A breakout trade could present itself here. Buyers could look for a rise over 0.8830 to extend the bullish trend to 0.8870 the October high and 0.90 psychological level. Sellers could look for a move below 0.8720 to expose the 100 sma and multi-month rising trendline at 0.8625.
NVIDIA Q3 earnings
NVIDIA is set to report earnings as the share price trades 45% lower this year. The semiconductor industry has faced a multitude of headwinds as consumers spend less on tech, and geopolitical tensions between the US and China could hit the revenue outlook. NVIDIA warned that an export ban to China could wipe around $400 million in sales in the quarter. However, the firm has since unveiled a replacement chip that gets around the rules and can be exported. Datacentres are the largest revenue earner and are expected to perform well, with sales jumping 30%, which is still the slowest level since the pandemic. Wall Street is expecting revenue to drop 17.6% annually to $5.8 billion and a 40% drop in EPS to $0.71.
BTC/USD holds gains after PPI boost
BTC/USD is holding steady around 17k after booking gains yesterday and as investors digest the ongoing fallout from FTX. Entities that are in some way linked to or with liabilities towards FTX are still emerging, so the true scale of the fallout is unknown. The industry remains braced for more contagion from the collapse of FTX. The downside could be limited by an upbeat macro backdrop. More signs that US inflation is slowing helped to boost bitcoin and other risk assets on Tuesday. US PPI, which measures inflation at the factory gate level, came in below forecasts at 8% YoY in October, down from 8.4% in September and below the 8.3% forecast. The data comes following cooler CPI inflation last week and adds to evidence supporting less aggressive rate hikes from the Federal Reserve going forwards, which is a good sign for cryptos and more broadly for risk assets. The Nasdaq closed 1.45% higher. US retail sales are in focus today.
| US retail sales | Expected: 1% (1%) | Previous: 0% |
Support can be found at 15500 (2022 low) and 13850 (June 2019 high)
Resistance for the pair can be seen at 20k (psychological level) and 21400 (November high).
