Nvidia earnings report released, the US dollar slightly declined; euro strengthened

Investing.com - The US dollar edged lower on Wednesday as markets remained cautious ahead of the earnings report from AI giant Nvidia, which could dominate future market sentiment.

As of 03:50 AM Eastern Time (16:50 Beijing Time), the US Dollar Index, which tracks the dollar against six major currencies, fell 0.1% to 97.707, up nearly 1% over the past month.

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Nvidia Earnings Highly Anticipated

Since the implementation of a 10% global tariff by U.S. President Donald Trump on Tuesday, the dollar has been fluctuating within a relatively narrow range, as markets prepare for a possible increase to 15%.

Despite a recent Supreme Court ruling, Trump stated in his overnight State of the Union address that he will continue to push forward with his tariff agenda. However, since he needs congressional approval to impose additional tariffs, there is likely to be significant limitations on his ability to do so.

Market attention has quickly shifted to chip giant Nvidia’s quarterly earnings, which will be released after the close of Wall Street trading. Given current concerns over overvaluation in the tech sector and massive investments in artificial intelligence, this report is especially scrutinized.

In a report, ING said: “Nvidia may need to exceed market expectations and provide strong guidance to instill meaningful confidence.” “At this stage, if earnings fall short of expectations, the downside risk to global risk sentiment seems greater than the upside potential from earnings surprises.”

ING added: “If the dollar declines in tandem with high-beta currencies, it would be a worrying sign, indicating broader concerns in the market related to the revaluation of AI-related issues in the U.S.” “We believe this scenario is unlikely, and the dollar will continue to weaken but remain negatively correlated with the U.S. stock market.”

German Economic Growth Boosts Euro

In Europe, EUR/USD rose 0.2% to 1.1792, supported by data showing Germany, the eurozone’s largest economy, grew 0.3% quarter-over-quarter in Q4 2025, a rebound from zero growth in the previous three months.

However, gains are limited, as Friday’s inflation data could be the main driver of economic data this week.

ING said: “Nevertheless, concerns about U.S. concentration risk remain quite evident, which may continue to encourage investors to buy EUR/USD dips. We still lean toward the view that support at 1.1750-60 can hold for now.”

GBP/USD rose 0.2% to 1.3521, rebounding slightly after hitting a one-month low, following remarks from Bank of England Governor Andrew Bailey on Tuesday that, while a rate cut in March is possible, the bank’s closely watched service price inflation has not fallen as much as expected.

Bailey supported holding rates steady in a monetary policy committee vote earlier this month by a 5-4 majority.

Yen Continues to Weaken

In Asia, USD/JPY rose 0.1% to 156.00, remaining near a two-week high.

Media reports indicated that Japanese Prime Minister Fumio Kishida expressed concerns about further rate hikes during a meeting with Bank of Japan Governor Kazuo Ueda.

These reports have sparked speculation that political resistance could limit the BOJ’s tightening path.

USD/CNY fell 0.2% to 6.8672, while AUD/USD surged 0.7% to 0.7106, after data showed overall inflation rose 3.8% year-over-year in January, unchanged from December but above market expectations.

The RBA’s preferred trimmed mean core inflation also rose to 3.4%, the highest in over a year.

These figures have increased market bets on a possible rate hike in May.

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