USD Strengthens as Amazon Earnings Beat Boosts Risk Appetite

The US dollar is seeing modest upward pressure as Amazon's strong Q1 earnings results bolster broader risk sentiment and reinforce confidence in the US economy. Amazon reported revenue of $181.5 billion, surpassing expectations of $177.3 billion, while Q2 guidance of $194-199 billion significantly exceeded the consensus estimate of $188.9 billion. Shares initially dipped but recovered to trade 1.7% higher. Capital expenditure surged 77% year-over-year to $44.2 billion, with trailing twelve-month capex reaching $147.3 billion, signaling aggressive investment in AI infrastructure and cloud services. This robust corporate spending supports the narrative of a resilient US economy, which could influence Federal Reserve rate expectations by reducing the urgency for near-term cuts. For forex traders, strong US corporate earnings typically support USD pairs such as EUR/USD on the downside and USD/JPY to the upside. The data reinforces a risk-on environment that may weigh on traditional safe havens like the Japanese yen and Swiss franc while providing a tailwind for the dollar index in the near term.