DOW JONES AND NASDAQ FUTURES STEADY AHEAD OF DISNEY EARNINGS

American futures rose slightly as investors reacted to the relatively strong quarterly results from several companies. On Tuesday, Lyft said that its total revenue for the fourth quarter increased by 70% as demand for the service increased. In another report, Chipotle Mexican Grill said that its revenue held steady in Q4 and hinted that it will increase prices again. And today, CVS Health announced that its revenue growth gained steam in Q4. It then upgraded its forward guidance. Later today, companies like Walt Disney, Motorola, and Mattel will publish their results.

The FTSE 100 index tilted higher after the positive quarterly results by GlaxoSmithKline. The company said that its earnings per share rose to 25.6p, which was better than the expected 23.8p. It will pay a dividend of 23 pence per share. Its revenue rose to more than 9.5 billion pounds even as its vaccine sales fell by 7%. In a statement, the CEO said that the company was focused on growth as it works towards breaking into two. The results came a day after BP published strong results.

The euro made a bullish breakout after the strong trade numbers from Germany. According to Destatis, the country’s exports increased by 0.9% in December while imports jumped by 4.7%. As a result, the overall trade surplus reduced to about 6.8 billion euros. Still, the country’s trade surplus declined for the fifth straight year as imports jumped and the price of energy rose. In total, the annual trade surplus fell by 4% to 173.3 billion euros. Its exports rose by 14% to more than 1.38 trillion euros.

EURUSD

The EURUSD pair rose to an intraday high of 1.1438 after the strong German trade numbers. On the four-hour chart, the pair managed to move above the upper side of the bullish flag pattern. It also moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, there is a likelihood that the pair will keep rising as bulls target last week’s high of 1.1483.

GBPUSD

The GBPUSD pair bounced back as the US dollar retreated. It is trading at 1.3582, which is slightly above last week’s low at 1.3485. On the four-hour chart, the pair moved slightly below the 23.6% retracement level. It also moved above the 25-day moving average and the first support of the Andrews pitchfork tool. Therefore, the pair will likely keep rising ahead of the US inflation data.

USDMXN

The USDMXN pair retreated as emerging market currencies rallied. It fell to a low of 20.50, which was lower than this week’s high of 20.68. On the four-hour chart, the pair has moved below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. It has also formed what looks like a head and shoulders pattern. Therefore, the pair will likely keep falling as bears target the key support level at 20.47.