EUR/USD, GBP/USD advance as liquidity-driven rally overshadows risks

Major currency pairs including EUR/USD and GBP/USD posted gains as a liquidity-fueled rally in risk assets overshadowed mounting geopolitical concerns. EUR/USD advanced amid improved market sentiment, while GBP/USD benefited from sterling strength against the dollar. USD/CHF retreated as the Swiss franc's safe-haven appeal attracted flows despite broader risk-on conditions. EUR/GBP showed mixed trading as both currencies gained against the dollar but at varying rates. The market's ability to shrug off geopolitical tensions, including Russia-Ukraine developments, suggests strong underlying liquidity conditions are driving price action. Traders appear to be prioritizing yield-seeking opportunities over defensive positioning, though this dynamic could shift quickly if geopolitical situations escalate further. Technical indicators suggest continued momentum for risk currencies in the near term, though traders should remain vigilant for sudden sentiment reversals.