AMD-Meta Deal Shifts AI Focus ahead of Nvidia Earnings

The EUR/USD pair climbed back toward the 1.1800 level during Wednesday’s Asian session, recovering the previous day’s modest losses as renewed US Dollar weakness gathered pace. Fresh concerns over global trade developments have weighed on the Greenback, helping the common currency regain ground.

Investor sentiment toward the Dollar deteriorated after US President Donald Trump outlined a revised tariff framework following a Supreme Court ruling against earlier sweeping levies. In his State of the Union address, Trump confirmed a temporary 10% global tariff for 150 days under Section 122, with the administration working toward a 15% rate. The announcement has reignited fears of retaliatory measures and broader disruptions to global supply chains, adding to uncertainty around the economic outlook and pressuring the USD. Notably, the Dollar’s downside has persisted despite a relatively hawkish tone from the Federal Reserve.

On the European side, European Central Bank President Christine Lagarde said that inflation dynamics and interest rate policy in the Eurozone are currently in a favorable position, reiterating that no immediate policy shift is under consideration. Her comments provided additional support to the euro.

Looking ahead, markets will focus on the final Eurozone consumer price index figures, along with Germany’s final GDP data and the GfK Consumer Climate survey for fresh directional cues. Later in the North American session, speeches from key FOMC officials are expected to offer further insight into the US policy outlook and could generate short-term volatility in the pair.

Gold prices retreated on Tuesday slipping below the $5,150 mark to trade near $5,140 and snapping a four-day winning streak. The pullback comes amid profit-taking after recent multi-week highs, alongside renewed strength in the US Dollar.

Following the latest rally, investors appear to be locking in gains, exerting downward pressure on the precious metal. Additional headwinds stem from hawkish rhetoric by officials at the Federal Reserve, which has lent support to the Greenback and weighed on the USD-denominated commodity. Susan Collins, President of the Federal Reserve Bank of Boston, said Tuesday that interest rates are likely to remain unchanged for some time, citing ongoing labor market resilience and persistent inflation risks.

Market participants are also looking ahead to US President Donald Trump’s State of the Union address for further clarity on fiscal and trade policy direction.

Despite the current correction, downside risks for gold may remain limited amid continued geopolitical and trade-related uncertainty.

Meanwhile, diplomatic developments are also in focus. The United States and Iran are set to hold another round of talks in Geneva on Thursday, amid signs that Washington believes Tehran may be prepared to scale back its stockpile of highly enriched uranium. Iranian Foreign Minister Abbas Araghchi said there remains a meaningful chance of reaching a diplomatic solution.

Oil prices advanced in Asian trading on Wednesday, holding just below seven-month highs reached earlier this week, as ongoing US-Iran tensions helped offset bearish pressure from a substantial rise in US crude inventories and renewed trade uncertainty.

Crude markets remained supported by elevated geopolitical risk premiums linked to the Middle East. US officials, including special envoy Steve Witkoff and presidential adviser Jared Kushner, are scheduled to meet Iranian counterparts in Geneva on Thursday in an effort to revive progress toward a nuclear agreement.

Iran’s foreign minister has indicated that a diplomatic solution remains achievable if both sides remain committed to negotiations, suggesting Tehran may show flexibility on sensitive nuclear issues in exchange for sanctions relief. However, US President Donald Trump has warned of “very bad consequences” should talks fail, highlighting the risk that diplomacy could give way to escalation.

Trump’s previously stated 10-to-15-day deadline for progress—pointing to early March—has added to market uncertainty. As a result, traders are continuing to factor in a sizable geopolitical risk premium, leaving oil prices highly sensitive to further developments.

On the supply front, the American Petroleum Institute reported an 11.4 million-barrel increase in US crude inventories for the week ended February 20—well above expectations for a 1.9 million-barrel build. The sharp rise in stockpiles could weigh on prices if confirmed by official data. Market participants now await figures from the Energy Information Administration later in the session for confirmation.

Wall Street rebounded strongly on Tuesday, recovering from the previous session’s sharp sell-off as technology stocks led the advance, with shares of Advanced Micro Devices at the forefront of gains.

Investor sentiment had been rattled on Monday by mounting global trade uncertainty and concerns over potential artificial intelligence-driven disruption. Markets are also closely watching US President Donald Trump’s State of the Union address for further clarity on fiscal and trade policy.

Monday’s decline was triggered in part by a report from Citrini Research outlining a hypothetical long-term scenario in which AI adoption could lead to widespread white-collar job losses, weaker consumer spending, rising loan defaults and, ultimately, economic contraction.

Trade concerns remained front and center after a 10% global tariff introduced by Trump took effect at midnight Tuesday, following a ruling by the Supreme Court of the United States that struck down his earlier “reciprocal” levies.

On the earnings front, Home Depot reported an unexpected rise in quarterly comparable sales. CEO Ted Decker said that, excluding storm-related impacts, underlying demand remained relatively stable throughout 2025. Shares of the home improvement retailer ended the session 2% higher.

Technology stocks stabilized after Monday’s sell-off, aided by fresh partnership announcements. AMD surged roughly 9% after expanding its agreement with Meta Platforms to supply chips for AI infrastructure. Attention now turns to earnings from Nvidia, due Wednesday. Widely viewed as a bellwether for AI demand, the world’s most valuable company is expected to post robust year-on-year earnings growth, potentially setting the tone for the broader technology sector.