USD Holds Firm as Equity Futures Rise on AI Momentum and Oil Rebound

US equity futures edged higher in early trading, supported by continued AI-sector euphoria led by Nvidia's strong performance and a bounce in crude oil prices. The risk-on tone in equity markets has implications for forex positioning, as the dollar index held steady amid competing forces. Rising oil prices typically benefit commodity-linked currencies such as CAD and NOK, while risk-on sentiment tends to weigh on traditional safe havens like JPY and CHF. The Nvidia-driven tech rally underscores persistent appetite for risk assets, which may limit demand for the dollar as a safe haven in the near term. However, strong US economic fundamentals continue to provide a floor for the greenback. Traders should watch for any shifts in risk appetite as oil volatility and equity momentum develop throughout the session. Key pairs to monitor include USD/CAD, where oil dynamics play a direct role, and USD/JPY, where risk sentiment and yield differentials remain the primary drivers.