USD Strengthens vs EUR, GBP, JPY as Yields Rise on Geopolitical Risks

The US dollar is advancing against major counterparts as rising US Treasury yields and geopolitical tensions drive broad-based USD strength heading into the North American session. EUR/USD, USD/JPY, and GBP/USD are all showing significant technical developments as traders digest overnight Middle East developments. While geopolitical risks remain elevated, tentative signs of back-channel diplomacy have offered some relief, preventing a full-scale risk-off capitulation. Canada's retail sales data, with a consensus estimate of 1.0%, is a key event risk for USD/CAD. From a technical perspective, the dollar's momentum is supported by the continued move higher in yields, which is pressuring EUR/USD and GBP/USD lower while pushing USD/JPY higher. Traders should monitor key support and resistance levels across these major pairs, as the combination of rising yields and geopolitical uncertainty creates conditions for sharp directional moves. The interplay between haven demand and yield differentials will be the dominant theme for the remainder of the session.