Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

07.04.2026

In the previous day’s U.S. currency markets, the dollar and the yen both weakened as the situation remained deadlocked: despite Iran signaling its intention to end hostilities with both the U.S. and Israel, U.S. President Trump maintained his stance that further attacks would follow if a ceasefire agreement could not be reached by the evening of the 7th. The AUD/USD pair rose from 0.6876 to 0.6938, continuing to trade just below the 75-day moving average on the daily chart.

Among European currencies, the euro rose against the yen. The EUR/JPY pair climbed from 183.637 to 184.457. The 200-period EMA on the hourly chart acted as a support level, driving the price higher. Similar price action is observed on the 4-hour chart, and on the daily chart, the price is rising with support from the 20-period MA. Furthermore, on the weekly chart, the uptrend along the 20-period MA has remained intact since the beginning of the year.

Today’s economic indicators include the Japan Household Expenditure Survey at 8:30, the Japan Economic Sentiment Index (flash estimate) at 14:00, the Germany Non-Manufacturing PMI (final reading) at 16:55, the Eurozone Services PMI at 17:00, the UK Services PMI at 17:30, U.S. Durable Goods Orders (flash estimate) at 21:30,23:00: Canada’s Ivey Purchasing Managers’ Index; 25:35: U.S. remarks by Goolsbee, President of the Chicago Fed; 26:00: U.S. 3-year Treasury auction; 28:00: U.S. consumer credit balance; and 6:50 the following day: U.S. remarks by Jefferson, Vice Chair of the Federal Reserve.We should remain cautious about the downside potential for the US dollar, which has weakened due to concerns over the situation in Iran.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed