The US dollar index trades higher after upbeat US retail sales It hit a high of 106.38 yesterday and is currently trading around 106.315
Markets await Israel's response to Iran's attack. Israel Army spokesperson Daniel Hagari said Israel would respond "at the time we choose".
US retail sales rose 0.70% in Mar, above the estimate of 0.40%. Core sales jumped 1.1% last month, well above the market forecast of 0.50%.
According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 77% from 42.60% a week ago.
Major resistance- 106.20/107
Major support- 105/103.80
EURUSD-
EURUSD is trading weak for a fourth consecutive day on board-based US dollar buying. The escalation of tension in the Middle East after Iran's attack on Israel has increased demand for safe-haven assets like the US dollar. The US Empire State manufacturing index dropped to -14.3 in March vs. an Estimate of -5.20.
Major resistance-1.0660,1.0720
Major support- 1.0600,1.0500
Yen-
The pair hit a multi-decade high due to a surge in US treasury yields. The Hawkish US Fed and geopolitical tensions support the US dollar at lower levels. Any break above 155 confirms minor bullishness.
Major Resistance- 155,156
Major support- 153.70,152.68
Canadian Dollar
The Canadian dollar is trading weak ahead of Canada's CPI data. Canadian manufacturing sales rose 0.70% in Feb, in line with the estimate of 0.40%.
Any break above 1.3820 confirms further bullishness.
Resistance- 1.3820,1.3865
Major support- 1.3760,1.3700


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