Morning Note: Broadcom’s AI-Driven Earnings, ECB Rate Cut, and US Jobless Claims

Investors Eye Broadcom’s Quarterly Earnings Report

Broadcom (AVGO) is scheduled to reveal its fiscal 2025 first-quarter results on March 6 at 22:00 GMT. The business anticipates $14.6 billion in revenue for the quarter, which is 22.23% more than it made at the same time last year. Over the last 30 days, the consensus earnings estimate has stayed constant at $1.50 per share, representing a 22.23% year-over-year increase.

Broadcom's growing AI and generative AI solutions are anticipated to be the main drivers of company performance in the first quarter of the fiscal year. AI connectivity revenue is expected to stay high, with AI-related revenues expected to rise 65% year over year to $3.8 billion. Meanwhile, revenues from non-AI are predicted to drop by a mid-teen percent from the year before.

(Broadcom Inc Share Price Daily Chart, Source: Trading View)

From a technical analysis perspective, Broadcom's share price had been moving in a bullish trend until mid-December 2025 but started falling after forming a double-top candlestick pattern. Currently, the price is retesting the swap zone at 180 – 185. If this zone fails to support the price, the bearish momentum could push the price down to the support zone at 157 – 161. Conversely, if the price rebounds from the swap zone, it may continue forming another wave, challenging the previous resistance zone at 246 – 251.

ECB Expected to Cut Rates by 25bps

The European Central Bank is set to announce its interest rate decision on Thursday at 13:15 GMT, with expectations of a 25bps cut from the previous 2.90% to 2.65%. This will likely be its last easy decision for a while as trade wars and rearmament drive the continent's biggest economic policy upheaval in decades. Moreover, the rate cut expectation suggests that the European Central Bank (ECB) is shifting towards an accommodative monetary policy bias to support economic growth amid signs of slowing momentum.

(EUR/USD Daily Chart, Source: Trading View)

From a technical analysis perspective, the EUR/USD currency pair has been in a bearish trend since the end of September 2024, as indicated by the formation of lower highs and lower lows. However, it found strong support and rebounded at the beginning of January 2025.

Recently, the pair has surged upward with three consecutive bullish candlesticks, demonstrating significant bullish momentum. This signals a strong trend reversal from bearish to bullish. Such a solid bullish structure is highly possible to drive the price toward the resistance zone at 1.0920 – 1.0950 without a significant pullback.

U.S. Initial Jobless Claims Expected to Rise

The latest U.S. initial jobless claims data stands at 242K, while the upcoming forecast suggests a rise to 250K. This data is set to be released at 13:30 GMT. This expected increase could be driven by several factors, including seasonal employment adjustments, recent layoffs in specific industries, or broader economic conditions signalling a cooling labour market. Additionally, external factors such as higher borrowing costs, corporate cost-cutting measures, or slower economic growth might be contributing to a rise in jobless claims.

(U.S. Dollar Index Daily Chart, Source: Trading View)

From a technical analysis perspective, the overall trend of the U.S. Dollar Index has been bullish since the end of September 2024, as indicated by the formation of higher highs and higher lows. However, the index began to decline in early February 2025, marked by a significant double-top candlestick pattern.

Recently, three consecutive bearish candlesticks with strong bearish momentum have pushed the price downward, signalling a valid trend reversal from bullish to bearish. Therefore, it is highly likely that the index will continue declining without a significant pullback, retesting the support zone at 103.00–103.30.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.