USD Gains on Mixed Earnings & Fed Rate Cut Concerns Pressure Risk Assets

The US dollar strengthened broadly as mixed corporate earnings and concerns over the Federal Reserve's rate trajectory dampened risk sentiment across global markets. Major equity indices retreated 0.8-1.2% as weak forward guidance from key corporations raised recession fears, driving safe-haven flows into the greenback. The dollar index (DXY) climbed 0.4% to 104.20, with traders reassessing expectations for aggressive Fed rate cuts in 2025 following resilient US economic data. EUR/USD dropped 45 pips to 1.0805, while risk-sensitive pairs like AUD/USD fell 0.6% to 0.6520. Market positioning suggests continued dollar strength as investors await this week's Fed speakers and Friday's US employment report. Technical indicators show the DXY approaching resistance at 104.50, with a break above potentially targeting 105.00. Traders should monitor corporate earnings sentiment as a key driver of risk appetite and dollar demand in the near term.