Although Google parent Alphabet delivered a beat on both the top and bottom lines, the company’s chief signaled patience will be needed to see concrete results from artificial intelligence investments. Meanwhile, Tesla fell as much as 7% after profit fell short of estimates and the electric-vehicle giant delayed its Robotaxi event to October.

Additionally, traders also remain wary over mounting China’s economic slowdown worries, supporting the haven demand for the Greenback.

On Tuesday, the US Dollar found its feet and staged a decent comeback, mainly driven by the market’s anxiety ahead of the key US corporate earnings report. The US Treasury bond yields also rebounded firmly, notwithstanding the cautious market environment. 

Investors resorted to profit-taking on their USD shorts, as the economic calendar gets heated up from Wednesday. Global preliminary Manufacturing and Services PMI data will likely highlight the health of the economies, especially that of the Eurozone and the US, having a significant bearing on risk sentiment.

Weak PMI data could revive recessionary fears, putting a fresh bid under the safe-haven US Dollar. However, the non-yielding Gold price could also benefit from such a scenario, as US ‘hard-land’ fears could reinforce dovish Federal Reserve (Fed) expectations.

Markets are currently pricing in a September rate cut, as futures show a 97% chance, according to the CME Group’s FedWatch Tool.

All eyes also remain on the critical US Gross Domestic Product (GDP) report for the second quarter on Thursday and Personal Consumption Expenditures (PCE) inflation data for June on Friday for more Gold price action.