USD rebounds across majors as risk sentiment shifts favor dollar strength

The US dollar is staging a broad rebound against major currencies, with the DXY index climbing 0.5% to 104.85 as risk-off sentiment returns to markets. EUR/USD has retreated 0.4% to 1.0920, while GBP/USD dropped 0.3% to 1.2680. The dollar's recovery follows a period of consolidation and is supported by resilient US economic data and expectations that the Federal Reserve will maintain its restrictive stance longer than other central banks. US 10-year Treasury yields have risen 8 basis points to 4.28%, reinforcing the dollar's yield advantage. Technical analysis shows the DXY breaking above its 50-day moving average at 104.70, targeting resistance at 105.30. EUR/USD faces immediate support at 1.0900, with a break potentially accelerating declines toward 1.0850. The rebound could gather pace if upcoming US data continues to show economic resilience, particularly in employment and inflation metrics.