USD Rebounds Across Major Pairs as Market Stability Returns

The US dollar staged a broad rebound against major currencies as tentative calm returned to global markets following recent volatility. EUR/USD retreated 0.2% to 1.0830 from session highs, while USD/JPY recovered to 149.80, gaining 0.3% as risk sentiment improved. USD/CAD extended gains to 1.4060, supported by weakening oil prices and diverging monetary policy expectations between the Fed and Bank of Canada. Technical analysis shows the dollar index (DXY) bouncing from 103.50 support, with momentum indicators turning positive. Market participants await key US economic data later this week, including consumer confidence and GDP figures. The rebound suggests traders are repositioning ahead of potential Federal Reserve commentary on the rate outlook. Near-term dollar strength may persist if economic data supports the Fed's current stance.