Dollar Weakens Slightly Ahead of Nvidia Report, Euro Strengthens
The US dollar moved slightly lower on Wednesday as investors opted for caution ahead of Nvidia's earnings release, which is seen as a key determinant of market sentiment.
The dollar index (DXY) edged lower to around 97.7, after strengthening over the past month, while the market still digested uncertainty surrounding US tariff policy following the implementation of 10% global tariffs and talk of a 15% increase.
Investors' focus now turns to Nvidia's report, due after Wall Street's close, as the company's results and guidance are seen as crucial for assessing whether AI spending remains strong enough to support technology sector valuations.
Several analysts believe the risk of a miss could depress risk appetite more than the potential upside from a "beat" result, prompting the market to await confirmation.
In Europe, EUR/USD edged up to 1.179, helped by data showing the German economy grew 0.3% (q/q) in Q4 2025, improving from the previous quarter's stagnation.
Nevertheless, market participants believe the upcoming inflation data will remain the main catalyst determining the euro's direction in the coming sessions.
In Asia Pacific, the Australian dollar strengthened after January inflation beat expectations, prompting markets to re-increase bets on a May RBA interest rate hike. The data showed annual inflation held at 3.8%, with the trimmed mean rising to 3.4%, making the AUD attractive again amidst the dynamics of global risk sentiment.
Source: Newsmaker.id
