UK Inflation in Focus, Nvidia & Shopify Earnings Due

Nvidia => The share price jumped 9% ahead of earnings

Shopify => The share price trades 35% lower this year

GBP/USD => The pound holds steady above 1.35

Nvidia Q4 Earnings Preview

Nvidia is due to release Q4 earnings after the closing bell today and after rival AMD reported record results earlier this month.
Expectations are for a solid performance from the chip maker’s gaming and data center business, which could help boost the share price, which dropped 16% in January but rallied 9% yesterday.

The earnings come hot on the heels of the collapse of the ARM acquisition deal last week, so the outlook will be very much in focus.Expectations are for EPS of $1.22, a 58% year-on-year increase, on revenue of $7.43 billion, which marks a 48% rise from the same period last year.

nvidia chart - 9% Share price rise
Expectations are for a solid performance from the chip maker’s gaming and data center business, which could help boost the share price which dropped 16% in January, but rallied 9% yesterday.

What’s next for Nvidia’s share price?

Nvidia has been trending lower since mid-November forming a series of lower high and lower lows. It trades below its falling trendline and its 50 & 100 sma.

The price ran into support at $210, as the RSI slipped into oversold territory suggesting that this could be a floor. Since then, the price rebounded but is struggling to push above $265, its falling trendline resistance and the 100 sma. The RSI has moved over 50 keeping buyers optimistic of further upside, but buyers will need to break above $265 to expose the 50 sma at $270.

A move above here could open the door to $286 the January 12 high. Failure to rise above $265 could see $239 tested, a level which offered support at several points across February ahead of $230.

Shopify Q4 Earnings Preview

Shopify is also due to release Q4 earnings today before the market opens.

The e-commerce platform provider trades down around 35% year to date proving it was not immune to the broader market sell-off. Even so, the stock continues to benefit from the ongoing shift to online commerce and new merchant growth. Meanwhile, headwinds come from rising costs and supply chain issues which could hamper growth. Expectations are for Q4 EPS of $1.31, down 17% over the year on revenue of $1.34 billion, which is up 19.5% on the previous quarter and 37% higher year on year.

GBP/JPY Rises Ahead of UK Inflation Data

GBP/JPY is rising for a second straight day, after booking small gains of 0.1% in the previous session. The yen fell on safe-haven outflows as Russia partially withdrew troops from the Ukraine border, easing tensions in eastern Europe and boosting risk sentiment.

The markers will continue monitoring Russia-Ukraine developments, which could rapidly change course, given that no one really knows Putin’s plans.
Meanwhile, the Pound pushed higher yesterday, supported by upbeat jobs data which showed that employers kept on hiring despite Omicron spreading rapidly.

Today, attention will remain on the UK economic calendar with the release of inflation data. High inflation and a robust labour market could encourage the BoE to raise interest rates again, lifting the pound. 

UK Unemployment

UK CPI YoY Jan

Actual: 4.1% (0)

Expected: 5.4% (0.3%)

Previous: 4.1%

Previous: 5.4%

Support can be found at 1.3500 (100 sma) and 1.3480 (50 sma).

Resistance for the pair can be seen at 1.36 (round number) and 1.3643 (February high).


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