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Dollar Strengthens as Poor Tech Earnings Reduce Risk-Taking"

The Dollar traded higher in Europe on Friday, boosted by weak earnings from three of Silicon Valley's largest companies, Amazon, Apple, and Alphabet, which damped risk appetite in the broader market.


The dollar saw its biggest gains against sterling, after the Bank of England hinted that it may have finished raising interest rates, a more dovish message than the market had expected.

On the other hand, the euro was better supported after the European Central Bank President, Christine Lagarde, guided for another 50 basis point hike next month. However, markets appeared to take that guidance with a grain of salt and are betting heavily that the ECB will be forced to lower rates as the economy stalls.

The euro was down 0.2% at $1.0886, while the pound was down 0.3% at $1.2190. Attention is now turning to the U.S. which is set to report its labor market data for January, while the ISM's non-manufacturing and services PMIs across Europe and China's Caixin Services PMI will also garner attention.



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