April 17, 2025 – DailyForex.pk
The U.S. Dollar came under renewed pressure this week despite upbeat economic data, as growing uncertainty from the U.S.-China trade conflict weighed heavily on market sentiment. The U.S. Dollar Index (DXY) pulled back sharply, trading near the 99.50 support level.
While March retail sales rose by 1.4%, beating analyst expectations, the forex market largely dismissed the data, shifting focus to escalating geopolitical and trade tensions that threaten broader economic stability.
If DXY breaks below 99.50, the next key support zone lies between 98.80 – 99.00, potentially opening the door for more downside pressure across USD pairs.
💶 EUR/USD Forecast: Bulls Eye 1.1400 Breakout
The EUR/USD pair rebounded strongly, reclaiming the 1.1350 level, as investors digested Trump’s move to restrict chip exports to China, a development that weakens global risk sentiment.
- Next resistance: 1.1400
- Break above this could trigger a push towards the 1.1450 – 1.1470 resistance zone
- Support to watch: 1.1300
If global uncertainty persists, EUR/USD may benefit from its role as an alternative to the U.S. dollar.
💷 GBP/USD Outlook: Struggles Below 1.3300 as Inflation Slows
The British pound lost momentum near 1.3300 after the latest UK inflation data showed:
- Headline CPI fell to 2.6% in March (from 2.8%)
- Core CPI eased slightly to 3.4%, in line with forecasts
This cooling inflation limits expectations for near-term BoE tightening.
- Immediate support: 1.3180 – 1.3200
- Break below could push GBP/USD down toward 1.3080 – 1.3100
For now, GBP/USD remains range-bound with a bearish tilt unless inflation surprises higher in upcoming data.
🇨🇦 USD/CAD Under Pressure as Gold Surges Above $3,300
The Canadian dollar gained ground against the greenback as spot gold rallied strongly, climbing above $3,300 per ounce. The strength in commodities supports CAD even as rate policy remains steady.
- Resistance: 1.3900
- Current trend: Bearish
- Next support: 1.3800 – 1.3820
If gold continues its upward momentum, USD/CAD may face additional selling pressure in the near term.
💴 USD/JPY Pulls Back with Falling Treasury Yields
The USD/JPY pair weakened as U.S. Treasury yields declined, undermining support for the dollar. The yield on 2-year Treasuries slipped below 3.80%, while the 10-year yield hovered around 4.30%.
- Key support: 141.50
- A break below this level could confirm downside momentum, targeting the 140.20 – 140.50 range
The yen could gain more ground if risk sentiment sours and U.S. bond markets remain under pressure.
🔍 Conclusion: Dollar Faces Critical Support – Traders Watch DXY and Key Levels
As the U.S. dollar approaches key support, traders are watching for technical breaks across major forex pairs. With market focus shifting away from economic data and toward trade war headlines, volatility may stay elevated in EUR/USD, GBP/USD, USD/CAD, and USD/JPY.
Stay informed with live forex forecasts, central bank insights, and technical updates at www.dailyforex.pk.