Weekly Forex Preview: 19 – 23 April / Netflix Stock in Focus

Key points

• Busy week ahead for the financial markets with Central Banks Meeting Minutes and earnings reports
• U.S markets will be quiet with no key economic events and U.S stocks lookout for earnings
• Key data expected from the U.K and Eurozone
• The earnings continue in the week ahead with Coca-Cola, Netflix stock, Snap, and American Express all assets traders will closely watch
• Netflix stock is the highlight of the week
• Technical outlook

Monday

Markets will be quiet on Monday, with no economic events on the calendar. Markets will be looking to recover some of the losses from the Friday session. The U.S stocks will look to continue their bullish momentum as tech earnings intensify influence in the markets.

Coca-Cola is set to report its Q1 earnings before the opening bell. The business was hit the hardest during the pandemic as people avoided restaurants and other gathering places. This was not good for the stock price and the company. We expect the report to show an EPS of $0.41 and revenues of $1.01 billion.

Tuesday

The markets will be relatively busy with key economic data which could influence the market movement.

We will start with China’s interest rate decision as their economy rebounds from the impact of the pandemic.

The market will pay attention to the Australian RBA Meeting Minutes. This could provide volatility to the Aussie dollar, which has recently been trying to sustain its bullish movement against the weak dollar. Investors hope the remarks on the minutes push the AUDUSD to the upside.

The focus will then shift to the U.K Claimant Employment Change and Eurozone consumer price index during the European market session. We can expect volatility from the sterling pounds and the Euro currency.

Later on the day, the NZD Consumer Price Index will finish up the day for the currency market.

On the other side, the earnings season continues with big names on the day. Netflix stock, Snap, and Johnson & Johnson will be the highlight of the day. Investors will be eyeing for positivity from the Netflix stock and Snap ahead of the earnings.

Wednesday

The markets will be very busy on the day with most of the focus on Canada’s interest rate and monetary policy statement.

In overnight trading, the AUD retail sales will be key in the markets and could provide further assistance for the Aussie dollar, looking to continue its bullish momentum. We expect the data to show some improvement despite the Covid-19 disruption.

The U.K Consumer Price Index will be very key for the sterling pounds as the traders will get an insight into the economy’s health as the economy reopens across most parts of the U.K.

The focus will then change to the Bank of England’s Governor who is set to give a speech.

The Canadian dollar will have a busy day, the Consumer Price Index will be very important to traders.

Later in the day, the focus will shift to the interest rate decision, monetary policy report, and press conference later on the day. We expect the interest rate to be kept unchanged, but traders will closely watch remarks from the BoC conference.

Thursday

Most markets will be very quiet due to no significant economic events.

The Euro markets will be looking for influence from the ECB interest rate decision and ECB deposit rate decision. We expect the interest rate to be kept unchanged, and investors will then wait for the monetary policy statement and press conference. The statement will contain remarks that will be positive or negative for the markets.

U.S markets will focus on the initial jobless claims data. Recent data has shown a big improvement, with the numbers being below 600,000, boosted by the U.S stimulus, vaccine rollout, and the opening of the economy. This shows the recovery in the labor market. We expect the data to show a further decline in the week ahead.

Friday

The markets will finish the week with the Sterling pound and the Euro seeking direction from the key economic events that could influence the price movement.

The German manufacturing PMI and Service PMI will look to influence the Euro movement. The focus for the Euro will then shift to the Eurozone Markit PMI.

Earnings

The earnings season will continue in the week ahead after the banking sector posted its better-than-expected earnings and saw the bank stocks rally up. The results showed a positive path to recovery as the economy reopens and a vaccine’s rollout occurs.

19 April

• Coca-Cola stock

20 April

• Netflix stock
• Snap stock
• Johnson & Johnson stock

Technical outlook

AUDUSD

The Aussie dollar will be looking for direction in the week ahead from the key economic events, RBA meeting minutes, and Retail sales data. We expected the Aussie to be influenced by a better report in the data.

Technically, the Aussie has been gaining against the dollar after the weak dollar showed a slow down from its strong momentum to the downside. The pair has formed a rally, base movement, and should the price break about the red resistance level. AUDUSD could continue its rally movement.

Netflix

The Netflix stock has had choppy trading sessions in the past 10 months after setting a new record high at $593. Netflix stock price has been consolidating within $460 and $575. Despite strong data in Q4, Netflix stock price failed to sustain its movement above the $570 level.

We can expect the market to rally slightly to an all-time high ahead of the earnings, but anything lower than expected could force Netflix stock price to remain below its highest level.