USD Strengthens as Futures Rally on Micron AI Boost, Oil Drops

US equity futures have surged following Micron Technology's strong earnings report, which reignited enthusiasm around artificial intelligence demand and boosted overall risk appetite across financial markets. The rally in risk assets has supported the US dollar broadly, as strong corporate earnings reinforce the narrative of US economic exceptionalism. Meanwhile, crude oil prices have erased earlier gains that were driven by geopolitical tensions, with the reversal removing a key inflationary tailwind and potentially giving the Federal Reserve more room to maintain its current policy stance. The drop in oil prices carries significant forex implications, particularly for commodity-linked currencies such as CAD and NOK, which may face headwinds. For major pairs, the combination of robust US equity performance and moderating energy prices creates a supportive backdrop for the dollar. Traders should monitor how sustained AI-driven equity gains and falling oil prices interact with rate expectations, as these dynamics could shape near-term positioning across USD pairs and risk-sensitive currencies.