AMD and SoftBank Lead AI Rally While Gold Hits Weekly Highs

EUR/USD remained supported above the mid-1.1700 range on Thursday, hovering near its highest level in more than two weeks as renewed optimism over a potential US-Iran peace agreement continued to weigh on the US Dollar.

The currency pair recovered during the Asian session, reversing part of the previous day’s late decline from the 1.1800 area. The US Dollar struggled to extend gains despite stronger-than-expected US employment figures released earlier this week, leaving the greenback under pressure for a second consecutive session.

US private-sector payrolls, according to the latest ADP report, rose by 109,000 in April, improving from a revised 61,000 increase in the previous month. However, market sentiment was dominated by reports suggesting progress in negotiations between Washington and Tehran.

US President Donald Trump said discussions with Iran had advanced over the past 24 hours and expressed confidence that a deal could be reached. Additional support for risk sentiment came after reports indicated the White House was close to finalizing a preliminary agreement aimed at easing tensions and ending the conflict.

Still, investors remain cautious. Markets continue to price in the possibility of a Federal Reserve rate increase later this year, while uncertainty persists over key disagreements surrounding Iran’s nuclear program. These factors could limit further downside in the Dollar and cap gains for EUR/USD in the near term.

Attention now turns to upcoming economic releases, including German factory orders, France’s trade balance data, US Challenger job cuts, and weekly jobless claims. Market focus will then shift to Friday’s closely watched US Nonfarm Payrolls (NFP) report, which could provide fresh direction for the Dollar and the EUR/USD pair.

Gold prices remained largely unchanged on Thursday, holding near their highest level in more than a week as continued weakness in the US Dollar provided support to the precious metal.

However, momentum appeared limited as investors awaited further developments surrounding ongoing negotiations between the United States and Iran before taking stronger positions in the market.

US President Donald Trump said on Wednesday that discussions with Iran had made progress and suggested a deal could be within reach. Reports also indicated that both sides were nearing a preliminary agreement aimed at easing tensions in the region.

Meanwhile, Trump warned that military action could intensify if negotiations fail, underscoring the fragile nature of the situation. Ongoing disagreements over Iran’s nuclear program have also prompted investors to reassess the likelihood of a lasting agreement, limiting stronger gains in gold prices.

On the economic front, stronger-than-expected US private-sector employment data offered some support to the Dollar. The latest ADP report showed payrolls increased by 109,000 in April, up from a revised 61,000 in the previous month, pointing to continued resilience in the US labor market.

Investors are now awaiting US weekly jobless claims data and comments from Federal Reserve officials later in the day. However, attention remains firmly focused on Friday’s US Nonfarm Payrolls (NFP) report, which is expected to play a key role in shaping expectations for interest rates and the near-term direction of gold prices.

Oil prices moved modestly higher during Asian trading on Thursday, recovering part of the sharp losses recorded in the previous session as markets continued to assess developments surrounding a possible US-Iran agreement and fresh US inventory data.

The rebound followed a steep decline on Wednesday, triggered by reports suggesting progress in negotiations between Washington and Tehran that could ease geopolitical tensions and potentially restore disrupted oil flows through the Strait of Hormuz.

According to reports, the White House is close to reaching a preliminary agreement with Iran through a memorandum of understanding aimed at ending the conflict. Sources indicated that Tehran was expected to respond to the proposal within the next 48 hours, with negotiations described as the closest both sides have come to a breakthrough since hostilities began.

Iranian officials confirmed that a response to the US proposal would be delivered soon, keeping markets focused on diplomatic developments in the region. Investors remain highly sensitive to any news involving the Strait of Hormuz, a key global energy transit route responsible for roughly 20% of worldwide oil shipments.

Supporting oil prices on Thursday, however, was the latest data from the US Energy Information Administration (EIA), which showed a continued decline in US crude inventories. Commercial crude stockpiles excluding the Strategic Petroleum Reserve fell by 2.3 million barrels in the week ending May 1, bringing total inventories to 457.2 million barrels. While the draw was smaller than market expectations for a 3.4 million-barrel decline, the data still pointed to steady demand conditions.

US stocks rallied strongly on Wednesday, with both the US 500 and US Tech 100 closing at record highs as easing tensions in the Middle East and upbeat corporate earnings boosted investor sentiment.

Technology shares led the advance after strong results from chipmaker Advanced Micro Devices (AMD), which surged nearly 19% to a record high following better-than-expected revenue guidance driven by robust demand for artificial intelligence and data center products. The positive momentum spread across the semiconductor sector, with Intel gaining 4.5% and the Philadelphia Semiconductor Index rising 4.5%.

Wall Street’s recent rally has been fueled by strong corporate earnings, particularly among companies tied to artificial intelligence and advanced technology. According to market data, more than 80% of S&P 500 companies reporting earnings so far have exceeded analysts’ expectations, putting the index on track for its strongest profit growth in more than four years.

Market participants also pointed to continued resilience in the US economy. Recent labor market data showed private payroll growth accelerated sharply in April, suggesting employment conditions remain stable despite ongoing geopolitical uncertainty.

Elsewhere, Walt Disney rose 7.5% after reporting stronger-than-expected quarterly results and outlining its future growth plans, while Uber Technologies gained 8.5% on optimistic booking forecasts for the second quarter. Super Micro Computer also posted strong gains, rallying more than 24% after issuing an upbeat revenue and profit outlook.

Investors are now turning their attention to Friday’s closely watched US nonfarm payrolls report, which could provide further clues on the strength of the economy and the Federal Reserve’s next policy moves.