Netflix drops 35% in one day

“Even if you are on the right track, you’ll get run over if you just sit there.” – Will Rodgers 

 

 

HEADLINES

 

• Canadian dollar climbs to 3-week high on hot inflation data 
• Gold futures fall as elevated bond yields dent appeal
• Oil slips nearly 1% on broader demand concerns
• Wall Street mixed as Nasdaq drags, bond yields dip after recent surge
• GBP/USD to tumble under the 1.30 level over the next few months – Scotiabank
• USDJPY Near Term: Downside favored

 

 

FOREX

 

 

Canadian dollar climbs to 3-week high on hot inflation data 

 

The Canadian dollar strengthened to its highest level in more than three weeks against its U.S. counterpart on Wednesday, as domestic inflation data bolstered expectations for another upsized interest rate hike from the Bank of Canada in June. 

Last week, the Bank of Canada raised its benchmark rate by half a percentage point, its biggest single hike in more than two decades, and opened the door to lifting interest rates above a neutral setting for the first time in 14 years. Its next policy decision is due on June 1.

 

 

COMMODITIES

 

 

Gold futures fall as elevated bond yields dent appeal 

 

Gold futures fell slightly on Wednesday, as traders weighed expectations of tightening Federal Reserve monetary policy and higher yields. 

On Tuesday, gold prices fell as much as 1.8% as hawkish comments from U.S. central bank officials, including St. Louis Federal Reserve Bank President James Bullard, propelled the dollar and 10-year Treasury yields to multiyear highs.

From a technical point of view, $2,000 was a key level of resistance and stopped the increase of gold prices, said Carlo Alberto De Casa, external market analyst at Kinesis.

 

Oil slips nearly 1% on broader demand concerns 

 

Oil slipped nearly 1% on Wednesday, extending losses for a second day, as broader concerns about economic growth and oil demand stagnation overshadowed tightening supplies.

The market brushed off a bullish government that showed a drop in U.S. crude and fuel inventories as concerns about economic stagflation loomed, according to John Kilduff, partner at Again Capital LLC in New York.

U.S. crude stockpiles fell by 8 million barrels last week due to a surge in exports to a more than a two-year high, Energy Information Administration data showed.

 

 

STOCKS

 

 

Nasdaq closes lower as Netflix weighs, sends ripples through tech

 

The tech-heavy Nasdaq closed down on Wednesday, weighed by streaming giant Netflix's surprise drop in subscribers which shook investor confidence in other high-growth companies, fearful they may face similar post-pandemic performance issues.

Netflix Inc (NFLX.O) plunged after it blamed inflation, the Ukraine war and fierce competition for the subscriber decline and predicted deeper losses ahead.

The ripple effects were felt both by financial technology names and companies whose fortunes were seen to have been boosted by pandemic trends such as lockdown measures.

Streaming peers Walt Disney, Roku and Warner Bros Discovery all dropped, as did stay-at-home darlings Zoom Video Communications, Doordash and Peloton Interactive.

 

 

ANALYSIS

 

 

GBP/USD to tumble under the 1.30 level over the next few months – Scotiabank 

 

“The rates, economic, and political picture point to losses firming under the figure in the near-term. 

“The IMF noted yesterday in its outlook review that the UK will see the highest rate of inflation this year among G7 countries and it revised its GDP growth projections for the UK by roughly 1ppt in each of 2022 and 2023 amid the cost-of-living crisis.”

“Weak growth and the cost-of-living crisis are likely to keep the BoE from hiking by as much as markets expect this year, which risks GBP losses extending well beyond 1.30 over the next few months.” 

 

 

CHART

 

 

USDJPY Near Term: Downside favored 

Technical View: Short position below 128.8. Target 127.45. Conversely, break above 128.8, to open 129.5.

Comments: The pair remains under pressure. Further weakness favored. 

Source: Trading Central
 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

SOURCES

https://www.reuters.com/article/canada-forex/canada-fx-debt-canadian-dollar-climbs-to-3-week-high-on-hot-inflation-data-idUSL2N2WI10M
https://www.cnbc.com/2022/04/20/gold-markets-us-treasury-yields-dollar.html
https://www.reuters.com/business/energy/oil-prices-rise-1-after-sinking-previous-session-2022-04-20/
https://www.reuters.com/business/global-markets-wrapup-1-2022-04-20/ 
https://www.reuters.com/business/nasdaq-futures-slip-netflix-earnings-shock-2022-04-20
https://www.fxstreet.com/news/gbp-usd-to-tumble-under-the-130-level-over-the-next-few-months-scotiabank-202204201432