S&P 500 momentum drives USD weakness across major forex pairs

The US dollar has weakened against major currencies as risk appetite improves with S&P 500 momentum trading gaining traction. EUR/USD has pushed higher by 0.2% to 1.0445, while Gold spot prices surged 0.8% to $2,625 per ounce, reflecting reduced safe-haven dollar demand. The Nasdaq 100's strong performance has encouraged traders to shift from defensive dollar positions into higher-yielding assets. Silver also benefited from the risk-on sentiment, climbing 1.2% to $29.85. Technical indicators suggest the dollar index faces resistance at 108.50, with support at 107.20. The shift in market sentiment comes as traders position for potential year-end portfolio adjustments and anticipate softer Fed rhetoric in 2025. Currency traders should monitor equity market momentum as a key driver for near-term dollar direction, with continued S&P strength likely to pressure the greenback further.