Morgan Stanley is the first major U.S. bank to report earnings for the fourth quarter of 2021. Image source: Cryptocurrency News, flickr.com
Morgan Stanley the First Major U.S. Bank to Report Quarterly Earnings
With the beginning of the highly-anticipated earnings season, volatility on the stock market is poised to increase drastically over the coming weeks. To get a deeper understanding of the current state of the market, have a look at our latest analysis of the Nasdaq Composite index.
The earnings season, reflecting the quarterly performance of major U.S. companies for the fourth quarter of 2021, will be kick-started by Morgan Stanley on Wednesday. The bank is expected to release its report before the market open on Wednesday.
Morgan Stanley QoQ EPS. Image source: TradingEconomics.com
According to the consensus forecasts, Morgan Stanley is forecasted to deliver earnings per share (EPS) of $2.0 for the three months ending December 2021. If realised, this would measure a marginal improvement from the $1.92 EPS that were posted for the same period last year.
Economic Sentiment in the Eurozone Expected to Improve Only Marginally
Recovery in the Euro Area remains sluggish, and the overall economic sentiment is expected to remain substantially subdued. However, a marginal improvement is expected to be recorded on a monthly basis.
The ZEW economic sentiment indicator is forecasted to reach 29.2 points in January, exceeding the 26.8 index points that were recorded a month prior. The report is scheduled for publication on Tuesday.
Eurozone MoM Economic Sentiment. Image source: TradingEconomics.com
Investors remain wary as inflation growth keep breaking old records, though a moderate increase in German consumption last month elucidates that the tentative and fragile recovery of the economies in the bloc could yet accelerate.
The anticipated sluggish improvement in headline sentiment could therefore help the struggling euro rise higher amidst a general dollar selloff, though bullish commitment on the single currency remains far from being decisive.
UK Inflation to Rise to a Decade-Peak on Accelerating Pace of Recovery
Again on Wednesday, the Office for National Statistics in the UK will release the newest consumer price index (CPI) revision. The preliminary forecasts expect headline inflation to accelerate to 5.2 per cent in December from the 5.1 per cent recorded a month prior.
UK MoM Inflation Rate. Image source: TradingEconomics.com
This is likely to have a negative impact on the pound in the short term, given that the rate of economic expansion for the same period was weaker than anticipated. For that reason, the price action of the EURGBP is likely to continue climbing higher.
As can be seen on the 30 Min chart below, the price action continues accelerating within the boundaries of an ascending channel. Moreover, the latest upswing appears to be behaving as per the expectations of the Elliott Wave theory.
After completing a minor 1-5 impulse wave pattern, it started developing an ABC correction. Currently, the price action is busy developing the final BC leg of the correction, following the reversal from the 23.6 per cent Fibonacci retracement level at 0.83534.
Bulls can therefore look for signs of another rebound to signify the completion of the ABC structure and the continuation of the broader uptrend. This is likely to occur either around the 61.8 per cent Fibonacci at 0.83387 or the major resistance-turned-support area (currently in green). The latter is also currently converging with the lower limit of the ascending channel.
EURGBP 30 Min Price Chart. Image source: Trendsharks ©, created with TradingView.com
Other Prominent Events to Watch Out for:
Monday - China QoQ GDP Growth Rate; U.S. Bank Holiday;
Tuesday - Bank of Japan Policy Decision; UK MoM Unemployment Rate.
Wednesday - Canada MoM Inflation Rate; UK BOE Chair Bailey Speaks; Germany MoM Inflation Rate; Alcoa Corp reporting AMC; Bank of America Corp reporting BMO.
Thursday - Australia MoM Unemployment Rate; U.S. MoM Unemployment Claims; American Airlines Corp. reporting BMO; Netflix Inc. reporting TAS.
Friday - UK MoM Retail Sales; Canada MoM Retail Sales; Eurozone ECB President Lagarde Speaks.
BMO - Before Market Open; AMC - After Market Close; TAS - Trade at Settlement.
Over the past few weeks, the USD has lost nearly 800 pips against the JPY, driven by Japan's shift away from decades of negative interest rates. With the Bank of Japan raising rates for the second time in a row, investors are adjusting their positions to [...]
Despite its volatility, Silver remains in an uptrend. While not as dynamic as Gold, XAG often mirrors XAU’s movements. A Multiple Top has formed around $32.50, and history shows that the more a level is tested, the weaker it becomes, increasing the likelihood of a [...]
A combination of factors, including Trump-era tariffs, the emergence of DeepSeek, and a slowdown in GDP growth, has contributed to the recent pullback in the US30 from its record highs. From a technical standpoint, a Double Top pattern has formed around the [...]
Over the past month, Silver has experienced an impressive 13% surge, marking a strong bullish trend. Despite notable volatility and multiple pullbacks, the overall momentum remains firmly to the upside. This strength is further validated by the Golden Cross, a historically reliable [...]
The Swiss Stock Market has been on a remarkable rally, surging over 15% between December and January. At times, the price action resembled a near-vertical ascent. However, following the announcement of Trump’s tariffs over the weekend, Monday’s trading session opened with a [...]
Between October and January, GBPUSD experienced a significant decline, dropping by approximately 1300 pips. However, we now observe signs of a potential trend reversal. Over the past few weeks, the pair has rebounded by more than 400 pips, shifting momentum toward a [...]
For the past 1 month, the UK100 saw a fantastic 600 point rally! The occasional corrections only attracted more buyers, which is healthy for the current up trend and the RSI currently exhibits elevated demand. A 130 point correction started last week on Friday, dipped below the [...]
Over the past two weeks, Japan’s leading stock index surged 2,000 points, reflecting strong bullish momentum. However, this week saw a sharp sell-off, erasing nearly all gains since mid-January. Despite this drop, the decline stalled at the 61.8% Fibonacci retracement, a key [...]
There is a clear shift in the momentum in the Oil market, with the commodity dropping with nearly 10% for the past 2 weeks. The Death Cross, a classic sell signal, is indicating that sellers are indeed in control and we are lookin now at a strong [...]
The 350 pip rally for the past 2 weeks seems like a trend reversal for EURUSD, with buyers back in control. The strong bullish momentum is also confirmed by the Golden Cross, a historic buy signal. Corrections are healthy for the trend and we currently looking at [...]
For the past 2 weeks GBPUSD went up with 400 pips and this is why we believe we might be looking at a trend reversal. The strong bullish momentum is confirmed by the Golden Cross, a classic buy signal, which supports the hypothesis that [...]
The Death Cross formation in USDJPY signals a robust downward momentum, with the USD depreciating by 300 pips over recent weeks. Further declines exceeding 300 pips are anticipated, potentially reaching the 152.00 level. Despite several corrective pullbacks, the price has been unable to surpass the [...]
Following the formation of a Double Top pattern at the 21,930 level last Friday, the NASDAQ has experienced a significant decline, plummeting by nearly 800 points. This downturn has been primarily driven by unfavorable manufacturing data emerging from China, alongside the Bank of Japan's interest rate hike on Friday. The market reaction closely resembles the [...]
GOLD's uptrend has regained strength, with several factors supporting further gains. The RSI bounced from oversold levels and now stands at 65, signaling growing demand and increasing buying volume. Additionally, the appearance of a [...]
For the past few months, USDJPY gained 2100 pips! Then, about 10 days ago the USD started dropping and so far corrected with 300 pips, dropping down to 155.00. A local Double Bottom got formed and this level also aligns with the important [...]
For the past week, the US100 has surged by over 1,000 points, signaling strong bullish momentum. The RSI stands at 69, indicating high demand and buyer dominance. A bullish Golden Cross pattern has emerged, confirming the upward trend. Despite a brief correction yesterday, with the index dipping to [...]
The Descending Triangle on the 4-hour chart, typically a bearish signal, failed to materialize this time. Instead, the Triple Bottom support at 92,000 held strong, driving significant buying volume. A Golden Cross—a classic bullish indicator—confirms strong [...]
After a 300-point correction from its December highs, the SP500 appears to be rebounding as bulls regain control. This recovery is supported by positive economic data, including strong NFP numbers, low unemployment, and CPI readings meeting expectations—all favorable for stocks. Additionally, the earnings season began yesterday with [...]
For several months, the EUR has been trending downward, losing hundreds of pips. While occasional corrections to the upside occur, bears remain in control. The strong downward momentum is highlighted by the Death Cross pattern, a classic sell signal. Yesterday, we observed another [...]
The Dollar remains strong, with buyers firmly in control since the Fed's December comments hinting at fewer 2025 rate cuts. This drove a 400-pip rally in USDCAD, now facing resistance near 1.4450 as early buyers take profit. Corrections are part of healthy trends, and the pair is testing support at [...]
