USD firms across majors as equities rebound ahead of key earnings

The US dollar strengthened against major currencies, with EUR/USD declining 0.3% to 1.0820 and GBP/USD dropping 0.4% to 1.2650, as risk sentiment improved ahead of crucial corporate earnings releases. The dollar's broad appreciation coincided with equity market rebounds, challenging the typical inverse correlation as traders positioned defensively before high-impact earnings announcements. Gold prices retreated from recent highs, falling 0.8% to $2,315 per ounce, further supporting dollar strength as safe-haven demand waned. Technical analysis shows EUR/USD testing support at the 50-day moving average (1.0815), while GBP/USD approaches the 1.2630 support zone. The dollar's resilience reflects market expectations for sustained US economic outperformance and potential Federal Reserve hawkishness. Near-term dollar strength could extend if equity markets maintain positive momentum while corporate earnings meet elevated expectations.