The Euro jumped sharply after the latest Eurozone employment figures. According to Eurostat, the bloc’s unemployment rate fell to a record low of 7% in December. The figures imply that the bloc’s labor market has done better than expected. The number of unemployed fell by 185,000, bringing the total number to 11.5 million. In Germany, the unemployment rate fell to 5.1%. Additional data showed that the manufacturing PMI remained relatively stable in the eurozone. Therefore, analysts believe that the European Central Bank will not be as dovish as expected.
The Australian dollar rebounded today after the latest interest rate decision from the Reserve Bank of Australia (RBA). The bank decided to leave the interest rate unchanged at 0.10%, where it has been since the start of the pandemic. The most notable change was that the RBA decided to end its quantitative easing policy. The last purchases will take place on February 10. Ahead of the meeting, some analysts expected the bank to continue asset purchases and hinted it would scale them back later this year.
US stocks fell slightly as traders awaited earnings from some of the country’s biggest companies. The biggest that will release its results today is Alphabet, the parent company of Google and YouTube. Analysts expect the company to have made sales of $72.23 billion and profit of $19.91 billion. This will be a big jump considering the company made $56 billion over the same period in 2020. Another big pre-market mover was AT&T, which announced it would cut its dividend after the spin-off. off of WarnerMedia. The payments will cost the company $8 billion a year.
EURUSD continued its comeback after strong economic data from Europe. The pair is trading at 1.1272, which was above last week’s low at 1.1120. On the four-hour chart, the pair moved slightly above the 25-day moving average while the Relative Strength Index (RSI) edged closer to its overbought level. Therefore, the pair will likely continue to rise as the bulls target the yellow trendline.
GBPUSD broke up after the strong data from the UK House Price Index. On the four-hour chart, the pair moved slightly above the upper side of the bearish flag pattern. It also slightly exceeded the 50% Fibonacci retracement level. The MACD has made a bullish cross pattern. Therefore, the pair will likely continue to rise ahead of the BOE’s decision.
The AUDUSD pair made a bullish comeback after the latest RBA decision. On the four-hour chart, the pair is slightly below the 23.5% Fibonacci retracement level. It also moved slightly above the 25-day moving average and sits slightly below the 23.6% Fibonacci retracement level. Therefore, the pair will likely continue to rise during the US session.