It’s all about Nvidia today as shares of the chipmaker surge following earnings but the FX market will have to grappled with a surging Nasdaq and rising front-end yields.
The dollar sold off in Europe but has stormed back early in North American trading in a 50-pip round trip that’s particularly noticeable in the pound and euro.
EURUSD 10 minutes
The risk trade should be negative for the US dollar but given that all the money is flowing into US-based AI companies and mega-cap tech, the flows work both ways.
On the economic calendar, we get US initial jobless claims at the bottom of the hour along with Canadian December retail sales. Then at 9:45 am ET we get the US services and manufacturing PMIs from S&P Global. At 10 am ET, it’s existing home sales.
