Today all eyes are on the global AI computer chip leader Nvidia (NASDAQ: NVDA). The tech giant will be announcing third-quarter earnings results today after market close. Nvidia, the best-performing stock in the S&P this year and the stock hit a fresh all-time high of $505 on Monday. The stock has gained 245% in 2023, pushing its market value above $1.2 trillion.
The company is expected to post quarterly earnings of $3.36 per share and revenues are expected to be $16.18 billion. Investors should also closely monitor the comments from CEO Jensen Huang during the earnings call for indications of Nvidia’s future. It will be interesting to see how the company’s third-quarter results look and the company's forecast for the fourth quarter.
European stocks made modest gains while US stock futures extended the rally as investors await the minutes from the U.S. Federal Reserve’s last meeting for clues to support expectations that major central banks are done with interest rate hikes. Meanwhile, Richmond Federal Reserve President Thomas Barkin said on Monday, that inflation will likely remain "stubborn" and force the Fed to keep interest rates higher for longer than investors expect.
Crude prices lost momentum after the recent rebound as investors remained cautious about the prospect of weaker demand. During the previous session, both Brent and WTI oil prices started the new week on a positive note. For this week, the key data for the oil prices today will once again be the weekly EIA crude inventory report, movement of the US dollar and FED meeting minutes.
In the currency market, the US dollar index struggles to regain momentum as it seesaws near the lowest levels since late August. The reason for such a significant weakening was a series of softer-than-expected economic data. Moving ahead, the outcome of the minutes from the Fed’s latest policy meeting should be a big piece for the next trend for the king dollar. Meantime, the Japanese yen remains one of the strongest currency pairs of this week.
Gold price regains the bullish momentum after a shaky start supported by the downside pressure on safe-haven demand for the greenback. The metal extended the gains on Tuesday morning and touched the two-week high of $1994 before retreating slightly. As of this writing, the metal trades below $1987 and the further direction will depend on FED minutes which will be released later today.
On the data front, the Reserve Bank of Australia (RBA) published the Minutes of its November monetary policy meeting. The RBA has revealed it hiked interest rates earlier this month because it feared inflation would not reduce by late 2025. Members were aware that inflation had continued to decline in the nation but underlying inflation was stronger than expected a few months earlier and, quarterly, had picked up slightly, it added.
Moving ahead today, the important events to watch:
US –Existing home sales: GMT – 15.00
US – FOMC minutes: GMT – 19:00
Technical Outlook and Review
EURUSD: Technically, if the pair manages to break above 1.0970, it will move towards the next resistance at 1.1010. On the downside, any meaningful pullback now seems to find support near 1.0910, below which the slide could further get extended towards 1.0870.
The important levels to watch for today: Support- 1.0910 and 1.0870 Resistance- 1.0970 and 1.1010.
GOLD: Technically the current price action signals suggest that a medium-term bullish trend remains intact. For today, considering heavy volatility there are chances the metal can rally to above the key resistance of $2000. On the downside, any meaningful pullback now seems to find some support near the 1980 zones, below which the slide could further get extended towards the 1974/70 regions.
The important levels to watch for today: Support- 1980 and 1974 Resistance- 1994 and 2010.
Quote of the day – “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” — Benjamin Graham.