The US Dollar recovers after after a volatile Tuesday. Markets are favoring risk-on ahead of the much anticipated Nvidia earnings. The US Dollar index trades up in the 106.50 area, still looking for support to bounce off from. The US Dollar recovers on Wednesday, with the DXY Index trading around 106.5, as market sentiment turns risk-on ahead of the Nvidia earnings release after the US closing bell.
Markets have let the dust settle on the geopolitical headlines from Tuesday and are eagerly awaiting the Nvidia earnings later this Wednesday. As Trump trade is starting to unwind, the DXY might need to look for lower support in order to attract buyers. After a brief test and a firm rejection last Thursday, the 107.00 round level remains in play. A fresh yearly high has already been reached at 107.07, which is the static level to beat. Further up, a fresh two-year high could be reached if 107.