EUR/USD and USD/JPY Shift as Global Equity Highs Lift Risk Sentiment

US equity futures are trading higher in early Wednesday session as record-breaking rallies in European and Asian stock markets spill over into North American markets, driving broad risk-on sentiment across forex. European indices hit fresh all-time highs, boosting EUR/USD as capital flows into the eurozone, while Asian equity strength has supported commodity-linked currencies such as AUD/USD and NZD/USD. The Japanese yen is underperforming as risk appetite reduces safe-haven demand, pushing USD/JPY higher. The synchronized global equity rally suggests improving macroeconomic confidence, potentially reducing expectations for aggressive central bank easing. The US Dollar Index (DXY) is showing mixed performance, weakening against risk-sensitive currencies while holding firm against traditional havens like CHF and JPY. Traders should note that elevated equity valuations could trigger sudden reversals in risk sentiment. Key levels to watch include EUR/USD resistance near recent highs, while USD/JPY support sits at prior consolidation zones. The correlation between equity strength and forex risk appetite remains the dominant theme for intraday positioning.