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

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

07.04.2026

In the U.S. currency market the previous day, 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: Japan’s Household Expenditure Survey at 8:30, Japan’s Leading Economic Index (flash estimate) at 14:00, Germany’s 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,the Ivey Business Index at 11:00 PM, remarks by Chicago Fed President Goolsbee at 1:35 AM, a 3-year Treasury auction at 2:00 AM, U.S. consumer credit data at 4:00 AM, and remarks by Fed Vice Chair Jefferson at 6:50 AM the following day.We should remain cautious about the downside potential for the US dollar, which has weakened due to concerns over the situation in Iran.