USD rises again after brief BoE inspired relief

Nike => The stock trades over 40% lower this year

BTC/USD => The cryptocurrency rises over 19k

EUR/USD => The pair falls below 0.97

Nike Q1 earnings preview

Wall Street expects Nike to report EPS of $0.93, down from $1.12 in the same period a year earlier, on revenue of $12.29 billion, down from $12.25 billion. The earnings report comes as Nike trades down 41% so far this year and 37% across the past 12 months. The selloff comes as the macroeconomic backdrop becomes increasingly challenging amid rising inflation, the cost of living crisis, and as high commodity prices lift costs. However, Nike has grown its Direct to Customer business, a much more profitable segment than the wholesale model. China’s performance will be particularly in focus after investors were spooked by China’s revenue falling 19% to $1.56 billion in the previous quarter due to lockdown.

Where next for the Nike share price?

Nike has been trending lower across the year, forming a series of lower highs and lower lows. The prices trades below the 20 750 sma, and the RSI is in bearish territory. The stock trades at around a two-year low. Sellers will look for a break below 95.00, the 2022 low, to extend the bearish trend towards 91.60, the June ’20 low, bringing 84.00 into target the May’20 low. On the flip side, buyers see the first target at $101.80, the July low, with a move above her exposing the 20 sma at 104.00. It would take a move over 117.50 to create a higher high.

BTC/USD holds over 19k 

Bitcoin and other cryptocurrency peers rallied over the past24 hours, with BTC/USD trading 4.4% higher at around 19,500. What has become clear is that Bitcoin is resilient amid an increasingly unstable macroeconomic backdrop. Over the past few weeks, the Fed hiked rates 75 basis points, the pound hit a record low, and the Dow Jones fell into bear territory (down 20% from its recent peak). Yet BTC/USD has consistently traded within a relatively tight range of around $19k. How long it can weather the storm here is unknown, particularly given its close correlation with stocks, particularly the Nasdaq. Still, the tech-heavy Nasdaq closed 2% higher yesterday, supporting bitcoin’s price. 

Moves by the BoE have been in focus, boosting the market mood. On a separate note, BoE official John Cunliffe was vocal about financial regulations being extended to bitcoin before the industry grows to a size where it too could become a financial threat. 

EUR/USD falls ahead of German inflation, US GDP data

EUR/USD jumped 1.5% higher yesterday as the market mood improved. The BoE intervened in the gilt market, buying long-dated gilts to bring stability. The emergency move brought calm to the markets, pulling the safe haven USD lower and lifting riskier assets. The euro rose despite dire German data. Consumer morale in the eurozone’s largest economy hit yet another record low as energy costs soar, and inflation remains high. Today the pair is edging lower ahead of a busy day on the economic calendar. German inflation is expected to rise further, adding pressure on the ECB to keep rate hikes aggressive. Meanwhile, US GDP data and jobless claims will be in focus in the US session. This is the Q2 GDP final reading, so it is not as market-moving as the initial reading.

Support can be found at 0.96 (round number) and 0.9536 (2022 low).

Resistance for the pair can be seen at 0.98 (round number) and 0.9895 (20 sma).