Tech Titans Take a Tumble, dollar remains firm ahead of NFP

As the financial world continues to navigate the turbulent waters of a global economic slowdown, European shares face an uphill battle as traders assess the ramifications of disappointing results from tech giants Apple, Amazon, and Alphabet. These companies, with a combined market value of nearly $5 trillion, recently reported a dip in sales and revenue, suggesting a sluggish demand for their core offerings, including electronics, e-commerce, cloud computing, and digital advertising.

Meanwhile, Ukraine and the European Commission will hold a summit to discuss Kyiv's integration into the bloc, with the presence of prominent figures like Ursula von der Leyen and Charles Michel expected. The session will also feature the release of S&P Global services PMIs for major countries like France, Germany, and Italy, as well as the January hiring report from the Labor Department.

As investors across the world continue to react positively to central bank policies perceived as "dovish," bonds in Australia and New Zealand have extended the global debt rally, with yields in the 2-10 maturity zone dropping over 10 basis points. Treasuries have stabilized after a strong performance following the Federal Reserve meeting, while Japan's 10-year yield slipped by 1.5 basis points.

The commodity market presents a mixed picture, with oil headed for its second weekly drop due to a diminishing recovery in Chinese demand and rising US stockpiles, while gold saw a slight rise after Thursday's slump. The Labor Department's report on January hiring, expected to show a 185K rise in Nonfarm Payrolls and a higher Unemployment Rate, could have significant implications for the USD, as investors closely watch Average Hourly Earnings for signs of further inflationary pressures.

As the impact of recent monetary policy decisions by the Federal Reserve and European Central Bank begins to take shape, the EUR/USD exchange rate has entered a period of consolidation near the 1.0900 threshold. Weaker US employment details could trigger a decline in the USD and provide support to the EUR/USD, limiting further losses. However, positive surprises could revive the ongoing USD recovery, albeit with limited upside as the central bank is widely expected to pause its rate-hiking cycle.