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By: Gustian Farrow, Head of StoneX TV • Content Channels
FOREX.com Market Analyst Razan Hilal dissects the recent rally in US equity indices, the US dollar’s retreat below 100, and the British pound’s surge to a three-year peak.
Market sentiment has flipped from caution to conviction, led by a resurgence in risk appetite across US equity indices as confidence in the Trump administration gains momentum. Hilal highlights that this bullish drive is underpinned by the AI boom and renewed US–Gulf cooperation, which have reignited investor confidence in growth sectors.
Technical patterns point to continued US dollar weakness. Hilal explains that “the US dollar is actually on a golden 618 retracement of that overall rebound from the 2025 low”, reflecting an inverse head-and-shoulders completion earlier this week. With the dollar index trading back below 100 and Fed officials voicing economic concerns, the path is clear for major currencies and precious metals to test—and possibly exceed—their 2025 highs.
Stronger-than-expected UK inflation data has shifted pound sentiment firmly bullish. As Hilal observes, “That is leaving the rate cut to the side and pushing the British pound to those extreme numbers”. Having cleared the critical 1.3440 resistance zone, she believes that the pound is poised to retest its 2021 highs, with targets in the 1.35–1.40 range if it maintains a clean hold above today’s levels.
Should the dollar continue to languish below 100, other major currencies, including the euro, and commodities will benefit from renewed strength. On the equity side, she believes that a break above the Nasdaq’s 21,500 mark could propel all three major US indices towards their 2025 records. Hilal concludes that the interplay between technical breakouts, central-bank rhetoric, and geopolitical catalysts will define market direction into year-end.
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---- Written by Gus Farrow
---- Expert: Razan Hilal, CMT, FOREX.com Market Analyst
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