USD Firms as Tech Rebound and Falling Oil Prices Fuel Risk-On Mood

US equity futures are rising as the technology sector rebound extends into a second session, while crude oil prices continue to slide, creating a favorable backdrop for risk assets. The combination of falling energy prices and renewed tech optimism is reshaping cross-asset correlations, with the US dollar maintaining a firm tone against major counterparts. Lower oil prices are easing inflationary concerns, which could influence Federal Reserve rate expectations and reduce the urgency for aggressive monetary tightening. This dynamic is particularly relevant for commodity-linked currencies such as CAD and NOK, which face headwinds from declining crude. The risk-on sentiment is also weighing on safe-haven flows into JPY and CHF, with USDJPY showing upward pressure. Near-term, traders should watch for confirmation of the equity rally's sustainability and any shifts in Fed Fund futures pricing. Technical levels on the US Dollar Index remain pivotal, with the greenback trading within a well-defined range. Upcoming US economic releases will be critical in determining whether the current risk-on momentum persists.