USD falls as shutdown resolution boosts risk sentiment

The US Dollar has declined broadly in Asian and European trading sessions following progress on ending the US government shutdown, triggering a risk-on rally across financial markets. EUR/USD gained 0.5% to 1.0910, while GBP/USD advanced to 1.2840, up 0.4% on the day. The risk-sensitive AUD/USD surged 0.7% to 0.6575, benefiting from improved global sentiment. USD/JPY fell to 149.50 as the yen attracted flows amid the shifting risk dynamics. The resolution removes immediate uncertainty about US fiscal operations and government spending, reducing demand for safe-haven dollars. Market participants are rotating into higher-yielding currencies and risk assets, with emerging market currencies also gaining ground. Technical analysis shows the Dollar Index testing support at 104.30, with next levels at 104.00. Traders await this week's US economic data, including consumer confidence and manufacturing PMI, for further directional cues.