NVIDIA’s report in the epicenter of the markets attention
Overall US stock markets seemed to be in the greens yesterday and today we highlight the release of NVIDIA’s earnings report in the after-market hours. The EPS and revenue figures which are to be reported are definitely in the market’s attention, yet the release goes beyond that. The company’s forward guidance about revenue expectations and investments plans, may play an equal part in forming the market’s opinion about the path of the company. Please note that the company, is considered to be in the epicenter of the market’s AI frenzy, which may allow the release to affect also the US tech sector as a whole.
Xlence Research Team opinion
Should the EPS and revenue figures reported by NVIDIA, be better than expected and at the same time the release be accompanied by a confident forward guidance for the company’s way ahead, we may see NVIDIA’s share price gaining ground and a more risk oriented approach by the markets emerging.
JPY stabilises, AUD gains
In the FX market, the USD showed maintained its bullish tendencies yesterday, while stabilised somewhat in today’s Asian and European sessions and seems trapped in a bullish triangle. Yet we also note the weakening of JPY yesterday and its stabilisation in today’s Asian session, as Japanese government promotes two academics for BoJ’s board, which the market seems to view as more dovish. The Aussie on the other hand strengthened as the Australian CPI rates for January remained unchanged, taking the market by surprise, which was expecting the rates to slow down a bit. Today we highlight the planned speech of Kansas Fed President Schmid, as he may express some hawkish comments.
Xlence Research Team opinion
We expect the USD’s dominance in the FX market to ease, allowing for a more balanced mix to emerge. We still see a bullish predisposition, albeit eased, of the market for the USD.
Oil prices continue to worry for a possible US-Iranian conflict
Oil prices despite retreating slightly remain relatively stable, near August 25 levels. Market attention continues to revolve around the possibility of a US-Iranian conflict and the referencing of Iran by US President Trump in his State of the Union speech yesterday, seemed to provide little new about the issue. We still tend to be leaning more towards the scenario of a possible US “warning” strike on Iranian soil, which could provide some support for oil prices. On the flip side, we note the considerable easing of the US oil market as reported by the increase of US oil inventories by 11.4 million barrels, by API yesterday. We note the release of corresponding EIA figure in today’s early American session.
Xlence Research Team opinion
Should we see market worries for a possible US-Iranian conflict intensify we may see oil’s prices rising, while a thawing of the tensions could weigh substantially on oil prices. Similarly should EIA also report a substantial increase of US oil inventories, we may see oil prices losing ground.
Bitcoin’s price edges higher
Bitcoin’s price started edging higher since the start of yesterday’s American session. On the other hand, fundamentals surrounding the crypto’s price seem to continue to be weighing on the bearish side, while also the market sentiment seems to remain bearish for Bitcoin, despite some easing and we currently view the recent rise of Bitcoin’s price as a correction higher. The wide uncertainty in the markets tend to continue to provide headwinds for Bitcoin.
Xlence Research Team opinion
Should the market’s risk off approach intensify in the coming days we may see Bitcoin’s price retreating once again, while on the flip side, should the market confidence get a boost, we may see Bitcoin’s price gaining further.
Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication.
