• EUR/ NZD slipped lower as investors turned cautious ahead of U.S. President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz.
• Oil prices edged up past $110 per barrel with both U.S. and Tehran showing no signs of reaching an agreement, while strikes on Iran intensified.
• The U.S.-Israeli war with Iran has rattled global markets and sent oil prices soaring, with the STOXX 600 declining more than 5% since the conflict began over a month ago.
• Tehran's effective closure of the strait has stoked inflation concerns and shifted monetary policy expectations.
• Euro zone PMI figures showed private sector expansion weakened sharply in March as the Middle East conflict drove up energy costs and disrupted supply chains, with overall demand falling for the first time in eight months.
• On the monetary policy front, ECB policymaker Dimitar Radev warned that inflation expectations could rise faster than in the past and said the central bank must be prepared to raise rates swiftly if price pressures persist..
• Immediate resistance is located at 2.0131(38.2%fib), any close above will push the pair towards 2.0278 (23.6%fib).
• Immediate support is seen at 2.0006 (38.2%fib) and break below could take the pair towards 1.9951(Lower BB).
Recommendation: Good to sell around 2.0100 with stop loss of 2.0160 and target price of 2.0020
