FxWirePro: Forex Daily Update

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