<\/p>\n\n\n\n
The U.S. dollar traded slightly lower on Wednesday as investors turned cautious ahead of quarterly earnings from artificial intelligence heavyweight Nvidia, widely seen as a key catalyst for broader market sentiment.<\/p>\n\n\n\n
By 03:50 ET (08:50 GMT), the Dollar Index\u2014which measures the greenback against a basket of six major currencies\u2014was down 0.1% at 97.707, after rising nearly 1% over the past month.<\/p>\n\n\n\n
Nvidia Earnings in Focus<\/strong><\/p>\n\n\n\n The dollar has remained rangebound after President Donald Trump\u2019s new 10% global tariff came into effect on Tuesday, with markets alert to the possibility of the levy being raised to 15%. In his State of the Union address overnight, Trump reaffirmed his commitment to the tariff agenda despite a recent Supreme Court ruling against his authority under the International Emergency Economic Powers Act. However, analysts expect his ability to impose additional duties to be limited, as further measures would require Congressional approval.<\/p>\n\n\n\n Investor attention has now shifted decisively toward Nvidia\u2019s earnings, due after the Wall Street close. With valuations in the technology sector stretched and spending on AI infrastructure under scrutiny, the results are seen as a critical test for risk sentiment.<\/p>\n\n\n\n \u201cNvidia will probably need to beat consensus and offer strong guidance to provide meaningful reassurance,\u201d ING said in a note. \u201cAt this stage, the downside risks to global risk sentiment from a miss appear larger than the upside from a beat.\u201d<\/p>\n\n\n\n ING added that a simultaneous fall in the dollar alongside high-beta currencies would signal growing U.S.-specific concerns linked to AI revaluations, though it sees this scenario as less likely. Instead, the bank expects the dollar to maintain its still-negative\u2014though weaker\u2014correlation with U.S. equities.<\/p>\n\n\n\n Euro Supported by German Growth<\/strong><\/p>\n\n\n\n In Europe, the euro gained modest ground, with EUR\/USD up 0.2% at 1.1792. The single currency was supported by data showing Germany\u2019s economy grew 0.3% quarter-on-quarter in the fourth quarter of 2025, improving from flat growth in the previous quarter.<\/p>\n\n\n\n Still, gains were limited, with investors awaiting euro zone inflation data due on Friday as the key macro catalyst of the week. ING noted that persistent concerns over concentration risks in U.S. markets could continue to support the euro on dips, adding that the 1.1750\u20131.1760 support zone is likely to hold for now.<\/p>\n\n\n\n Sterling also edged higher, with GBP\/USD up 0.2% to 1.3521, rebounding slightly from a one-month low. The move followed comments from Bank of England Governor Andrew Bailey, who said a March rate cut remains possible but cautioned that services inflation\u2014a key metric for the BoE\u2014has not eased as much as hoped. Bailey was part of the narrow 5\u20134 majority that voted to hold rates earlier this month.<\/p>\n\n\n\n Yen Weakens, Aussie Dollar Jumps<\/strong><\/p>\n\n\n\n In Asia, the Japanese yen continued to soften, with USD\/JPY up 0.1% to 156.00, hovering near a two-week high. Media reports suggesting that Prime Minister Sanae Takaichi expressed concern over further rate hikes during talks with Bank of Japan Governor Kazuo Ueda fueled speculation that political resistance could slow the BOJ\u2019s tightening path.<\/p>\n\n\n\n The Chinese yuan strengthened slightly, with USD\/CNY down 0.2% at 6.8672.<\/p>\n\n\n\n The Australian dollar outperformed, surging 0.7% to 0.7106 after inflation data showed headline CPI rose 3.8% year-on-year in January\u2014unchanged from December but above expectations. The Reserve Bank of Australia\u2019s preferred trimmed-mean inflation measure also climbed to 3.4%, its highest level in over a year, prompting markets to ramp up bets on a potential rate hike as early as May.<\/p>\n\n\n\n Overall, currency markets remained cautious, with Nvidia\u2019s earnings and evolving trade and monetary policy dynamics set to dictate the next move.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar traded slightly lower on Wednesday as investors turned cautious ahead of quarterly earnings from artificial intelligence heavyweight Nvidia, widely seen as a key catalyst for broader market sentiment. By 03:50 ET (08:50 GMT), the Dollar Index\u2014which measures the greenback against a basket of six major currencies\u2014was down 0.1% at 97.707, after rising …<\/p>\n","protected":false},"author":9,"featured_media":112016,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-124156","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/124156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=124156"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/124156\/revisions"}],"predecessor-version":[{"id":124157,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/124156\/revisions\/124157"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/112016"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=124156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=124156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=124156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}