Hawkish Fed Signals Lift US Dollar (10.29.2026)

The US dollar strengthened after the Federal Reserve held interest rates steady at 3.75%–4.00%, with two hawkish dissents reinforcing expectations for another rate hike in December. 

Gold slipped below $4,050, while silver remained under $53 as elevated energy prices and persistent inflation concerns weighed on precious metals. Meanwhile, the euro declined toward 1.1140 ahead of the European Central Bank's policy decision, and sterling weakened toward 1.3300 despite expectations for Bank of England tightening. The yen stabilized near 157.7 per dollar as investors awaited the Bank of Japan's decision, while renewed concerns over technology earnings supported safe-haven demand.

EUR/USD Slips Near 1.1140

EUR/USD declined toward 1.1140 during Thursday's Asian session as the U.S. Dollar gained ground following the Federal Reserve's policy decision. While the Fed held benchmark interest rates steady at 3.75%–4.00%, dissents from Governors Lisa Cook and Beth Hammack in favor of an immediate rate increase reinforced expectations for December tightening. Meanwhile, the European Central Bank is projected to hold its deposit rate at 2.50% today, with market attention shifting toward potential guidance regarding energy-driven inflation.

The first resistance is positioned at 1.1180 while the support starts from 1.1100.

Gold Pauses Below $4,050

Gold fell below $4,050 on Thursday, erasing earlier weekly gains after the Fed held rates steady without forward guidance. Two hawkish dissents favoring a 25-basis-point hike raised December tightening expectations amid energy-driven inflation. Uncertainty increased as Fed Chair Kevin Warsh proposed cutting annual policy meetings from eight to six. Investors now await US PCE inflation data for further clues. Meanwhile, Middle East diplomacy continues, but elevated oil prices sustain inflation risks, support bond yields, and limit gold’s recovery.

First resistance is seen at $4100, with initial support near $4000.

Yen Steadies Near 157.7

The Japanese Yen stabilized near 157.7 per dollar on Thursday following earlier weekly losses, as traders awaited the Bank of Japan's rate decision. While the BoJ is expected to hold policy steady, persistent domestic inflation could trigger hints of a December rate increase. Ahead of the decision, markets are monitoring key Japanese data, including Tokyo CPI and industrial output. Meanwhile, hawkish dissents at the Federal Reserve's rate pause strengthened U.S. December tightening bets. However, safe-haven flows offered support to the yen as disappointing earnings from tech giants Alphabet and Samsung renewed skepticism surrounding artificial intelligence capital spending.

First resistance is seen at 158.30, with initial support near 157.10.

GBP/USD Depresses to 1.3300

GBP/USD drifted lower toward 1.3300 during Thursday's Asian session as US dollar demand resurfaced. Markets currently price roughly an 80% probability of a December Federal Reserve rate increase, driven by lingering energy-related inflation risks, while ongoing U.S.-Iran geopolitical friction continues to support safe-haven dollar bids. However, growing expectations of near-term Bank of England monetary tightening are helping cushion sterling's downside.

From a technical view, resistance stands near 1.3360, with support around 1.3270.

Silver Trapped Near One-Year Lows

Silver traded under $53 per ounce on Thursday, hovering near one-year lows after the Federal Reserve kept interest rates steady without offering clear forward guidance. However, two hawkish dissents favoring an immediate rate increase increased market expectations for December policy tightening amid persistent energy-driven inflation. Uncertainty mounted further after Fed Chair Kevin Warsh suggested reducing annual policy meetings from eight to six. Investors are now awaiting U.S. PCE inflation data for clearer monetary policy direction.

From a technical view, resistance stands near $54.40, while support is located around $52.70.