FxWirePro: Forex Daily Update

The US dollar index is trading higher as an increase in demand for safe-haven assets. The escalation of tension between Iran and Israel increased after the Iran attacks on  Israel during the weekend. It hit a high of 106.10 yesterday and is currently trading around 105.95.

Iran launched over 200 drones and missiles against Israel on Saturday, which has increased geopolitical tension—markets eye Israel's reactions to Iran's attack for further direction.

US CPI came in above the estimated level, while the PPI showed a minor weakness. The number of people who have filed for unemployment benefits dropped by 11000  to 211000 for the week ended Apr 6th, 2024, compared to a forecast of 216000.

According to the CME Fed watch tool, the probability of a no-rate cut in  June increased to 77.6% from  48.50% a week ago.

Major resistance- 106.20/107

Major support- 105/103.80

EURUSD-

EURUSD lost its shine after the escalation of Middle East tension. The demand for safe-haven assets increased as market rumors about World War 3.  The dovish rate pause by the ECB also puts pressure on the  Euro at higher levels.  The central bank said that "it would be appropriate to reduce the current level of monetary policy restrictions" if inflation continues to move toward its 2% target.

Major resistance-1.0700,1.0760

Major support- 1.0600,1.0500

Yen-

The pair holds above 153 on board-based US dollar buying. Any break above 154 confirms minor bullishness.

Major Resistance- 154,155

Major support- 152,150

Canadian Dollar

USDCAD pared some of its gains ahead of Canadian manufacturing sales. Any break above 1.3780 confirms further bullishness.

Resistance- 1.3780,1.3865

Major support- 1.3730,1.3660