Nvidia  Boosts Tech Sector, Fed Policy In Focus

The EUR/USD pair edged lower to around 1.1490 during Tuesday’s early European trading session, as the US Dollar gained strength against the Euro. Rising oil prices, driven by escalating tensions involving the US and Israel in Iran have heightened inflation concerns, prompting markets to reassess the outlook for interest rates.

Meanwhile, Donald Trump reiterated his call for countries to support efforts to reopen shipping routes through the Strait of Hormuz. The remarks contributed to a modest improvement in global risk sentiment, reflected in firmer equity markets, and could limit further gains in the safe-haven US Dollar.Attention now turns to upcoming policy decisions from the Federal Reserve and the European Central Bank later this week.

The Federal Reserve is widely expected to leave its benchmark interest rate unchanged within the 3.50%–3.75% range at the conclusion of its two-day meeting on Wednesday. Elevated oil prices since the onset of the Iran conflict have led analysts to revise expectations for rate cuts.

In the Eurozone, the European Central Bank is also expected to keep its deposit rate steady at 2.0% during Thursday’s meeting. However, ECB Governing Council member Peter Kazimir has indicated that policymakers may consider tightening monetary policy sooner than previously expected.

Market pricing currently reflects expectations of a rate hike by the end of July, with roughly a 55% probability of a second increase by December.

Bitcoin traded in a narrow range around $74,000 early on Tuesday, giving back part of its earlier advance after briefly approaching the $76,000 mark. Market participants remained cautious, tracking oil price fluctuations linked to Middle East tensions while awaiting key central bank decisions.

Bitcoin found some support from short covering, as traders unwound bearish bets established during the early February sell-off. Still, upside momentum proved limited, leaving prices largely range-bound.

Ongoing institutional interest and consistent inflows into spot Bitcoin exchange-traded funds also helped underpin the market.

Investor sentiment remained sensitive as the conflict involving the U.S., Israel, and Iran entered its third week, keeping global markets on edge.

Meanwhile, Donald Trump reiterated calls for international cooperation to reopen shipping routes in the region. His remarks contributed to a modest improvement in overall risk sentiment, reflected in firmer equity markets, which may cap further gains in safe-haven assets. Persistently high energy costs have reinforced inflation concerns, shaping investor positioning across asset classes, including cryptocurrencies.

Attention is now firmly on the upcoming policy decision by the Federal Reserve on Wednesday. Additional central bank meetings are also scheduled globally this week.

Oil prices climbed more than 2% in early Tuesday trading, recovering part of the previous session’s losses as renewed concerns over supply disruptions in the Strait of Hormuz supported the market.

The Strait of Hormuz—through which roughly 20% of global oil and liquefied natural gas flows—has been heavily disrupted by the ongoing conflict involving the U.S., Israel, and Iran, now in its third week. The situation has heightened fears of supply shortages, rising energy costs, and persistent inflationary pressures.

Tensions also escalated after several U.S. allies rejected calls from Donald Trump to deploy naval forces to safeguard tanker traffic through the region. The U.S. president criticized the response, accusing Western partners of failing to reciprocate longstanding American support.

Meanwhile, Iran has reportedly asked India to release three tankers seized earlier this year as part of ongoing negotiations aimed at ensuring safe passage for Indian-linked vessels through the Gulf, according to Reuters.

The disruption has already had tangible supply impacts. The Organization of the Petroleum Exporting Countries’s third-largest producer, the United Arab Emirates, has been forced to cut output by more than half due to constrained export routes.

In response to rising energy prices, the International Energy Agency indicated that member countries could release additional crude supplies beyond the 400 million barrels already committed from strategic reserves.

On the geopolitical front, Israel signaled preparations for at least three more weeks of military operations, with overnight strikes reported across Iran, underscoring the risk of a prolonged conflict and continued volatility in energy markets.

U.S. equities rallied on Monday, recovering from last week’s sharp losses as declining oil prices helped improve investor sentiment. Gains were led by technology stocks, with Nvidia advancing after its CEO delivered an upbeat outlook on demand for artificial intelligence chips.

Oil markets continue to dominate investor focus as disruptions in the Strait of Hormuz threaten global energy flows. The vital shipping route, which handles roughly a fifth of global tanker traffic, has been effectively constrained by Iran, raising concerns over supply shortages and economic fallout.

Investor attention also centered on Jensen Huang, who spoke at Nvidia’s annual developer conference. Huang projected up to $1 trillion in purchase orders for the company’s Blackwell and Rubin AI chip platforms—double last year’s forecast.

The company is working to maintain its leadership in the AI chip space amid increasing competition from rivals such as Advanced Micro Devices and Intel, as well as major technology firms like Alphabet developing in-house processors.

Markets are now turning to a packed calendar of central bank meetings, including decisions from the Federal Reserve and the European Central Bank.

Policymakers will be assessing the economic impact of the Middle East conflict, particularly the inflationary risks stemming from higher energy prices.