Dollar Weakness Fuels Global Risk-On Sentiment

The US Dollar's recent rally may be turning into a technical retracement as it drifts lower, below the psychologically important 100 level.

This shift in sentiment has led to an improvement in risk appetite across global markets, with equities experiencing a positive start to the session.

The S&P 500 has extended its gains above its 50-day moving average on the daily chart, reinforcing its medium-term bullish outlook, while the Nasdaq is recovering but still trades below its own 50-day average.

Precious metals are benefiting from the weaker Dollar, with both Gold and Silver moving higher, and in FX, the Australian Dollar is one of the strongest performers, breaking above an important technical resistance level.