Euro Remains Supported Ahead Of ECB Policy Decision, Netflix & Tesla Q2 Earnings Reports

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Summary:

  • EUR/USD, EUR/GBP currency pairs
  • Netflix earnings report
  • Tesla earnings report

Read next: S&P 500 Amongst Major Indexes That Are Rising, Markets Are Waiting For Thursdays ECB Policy Decision 

Euro stole headlines on Wednesday

The EUR/USD currency pair ended the Wednesday trading day showing mixed market sentiment as the market awaits the European Central Bank’s (ECB) monetary policy decision due on Thursday. The Euro is still facing uncertainty regarding high inflation in the Eurozone and how the ECB plans to tackle it, in addition as the Noord Stream 1 opens after its routine maintenance period, there are still concerns as to whether Russia will open the gas taps.

The recovery of the Euro against the dollar could be reflecting a possible market inflection point. The Euro has recovered half of its July losses so far, this could mean a turn around against the Dollar for many other major currencies aswell.

The Euro stole the headlines on Wednesday as both Bloomberg News and Reuters reported that the market could see an outsized interest rate yield rise from the European Central Bank on Thursday.

Euro Remains Supported Ahead Of ECB Policy Decision, Netflix & Tesla Q2 Earnings Reports - 1 EUR/USD Price Chart

EUR/GBP currency pair

The market is reflecting mixed signals for this currency pair. According to a number of new reports, it is predicted that UK inflation could reach up to 12% by October, the report also showed that the inflation rate was growing at its fastest rate in 40 years. The Euro remains supported ahead of the ECB’s policy decision on Thursday

Euro Remains Supported Ahead Of ECB Policy Decision, Netflix & Tesla Q2 Earnings Reports - 2 EUR/GBP Price Chart

Netflix Earnings Report

Netflix's earnings report on Wednesday indicated they lost around 970,000 subscribers, beating the 2 million that was predicted last quarter, thus causing the company's stock price to jump. Its EPS beat market expectations. The company also warned that the rallying US Dollar would have an impact on international revenue. The streaming giant also indicated they had more time to understand and address the issues that have been impacting their streaming, revenue and other major indicators.

Euro Remains Supported Ahead Of ECB Policy Decision, Netflix & Tesla Q2 Earnings Reports - 3 NFLX Price Chart

Tesla earnings report

Tesla’s quarter 2 earnings report indicated the company beat market expectations with regards to adjusted EPS. Automotive margins came in at 27.9% down from the 32.9% seen in the first quarter, impacted by inflation, increased competition for battery cells and other components that are required for electric vehicles. In addition the invasion of Russia in the Ukraine and in conjunction with covid-19 lockdown measures in China caused supply chain issues and parts shortages.

Euro Remains Supported Ahead Of ECB Policy Decision, Netflix & Tesla Q2 Earnings Reports - 4

TSLA Price Chart

Sources: finance.yahoo.com, dailyfx.com, poundsterlinglive.com, cnbc.com

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Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.