USD gains as risk-off sentiment hits equities and crypto markets

USD strengthened across major pairs as risk aversion gripped markets to start December, with S&P 500 futures down 0.8% and Nasdaq futures falling 1.0%. The safe-haven dollar benefited as investors fled riskier assets, including Bitcoin which tumbled alongside equities. EUR/USD slipped 0.2% to 1.0520, while USD/JPY held steady near 149.80 as both currencies saw haven flows. The risk-off move follows growing concerns about AI sector valuations despite November's positive equity close. GBP/USD dropped to 1.2680 and AUD/USD fell 0.4% to 0.6450 as commodity currencies underperformed. Technical indicators suggest further USD strength if S&P 500 breaks below 5,900 support. Traders are positioning defensively ahead of key economic data releases this week, including US ISM Manufacturing and Non-Farm Payrolls on Friday.