USD Weakens Broadly as Risk-On Sentiment Lifts Stocks, Oil Drops $5

The US dollar declined broadly on Monday as risk-on sentiment dominated markets, with equities rallying and the greenback losing ground against major counterparts. Oil prices settled near session lows, falling approximately $5 amid speculation that the US Treasury may have intervened in energy markets, according to a prominent oil trader. Reports of direct US-Iran contact in recent days added to downward pressure on crude, with geopolitical implications rippling into commodity-linked currencies. On the data front, the US March NAHB housing market index came in at 38, slightly above the expected 37, providing minimal support for the dollar. European indices opened positively for the week, supporting EUR/USD and GBP/USD. President Trump expressed dissatisfaction with the UK, introducing potential political risk for the pound. NVIDIA CEO Huang projected at least $1 trillion in revenue visibility through 2027, fueling equity enthusiasm. The so-called TACO trades were noted as a developing theme. Traders should monitor USD weakness against risk-sensitive currencies and watch for further geopolitical developments affecting oil and the dollar.