Markets Balance Risk Appetite (08.05.2026)

Global markets traded with a cautious risk-on tone as easing geopolitical tensions and lower oil prices improved investor sentiment. 

The euro remained firm on expectations of further ECB tightening, while gold and silver extended their gains as cooling inflation concerns reduced expectations for a near-term Federal Reserve rate hike. Investors now await the ADP employment report and Friday's U.S. nonfarm payrolls data for fresh clues on the Fed's policy path.

Euro Steady Near Peak

The euro remains firm above $1.15, hovering near mid-June highs as diminishing geopolitical risks lift market sentiment. Plunging oil prices follow potential US-Iran diplomatic progress, with hopes for a Hormuz agreement soon. Strong Eurozone performance, featuring 0.4% second-quarter growth and 2.9% inflation, strengthens expectations for an ECB rate increase in September.

The first resistance is positioned at 1.1560 while the support starts from 1.1510.

Gold Surges Above $4,150

Gold advanced beyond $4,150 per ounce on Wednesday, stretching gains into a third straight session. Tensions eased as markets evaluated progress toward a Strait of Hormuz agreement, driving oil lower and dampening inflation fears. September rate hike expectations dropped to 57%. Investors now await ADP payroll figures while Chinese ETF inflows remain resilient at these elevated levels.

First resistance is seen at $4180, with initial support near $4100.

Yen Pauses After Rally

The yen stabilized near 157.5 against the dollar on Wednesday following its recent sharp gains. Official statements reaffirmed ongoing US support after unprecedented joint interventions, which previously sparked a 5% three-day surge backed by massive central bank operations. Meanwhile, six consecutive months of rising real wages in Japan reinforce expectations for additional Bank of Japan rate increases.

Initial resistance stands at 158.60, while the first support is at 157,00.

GBP/USD Steadies Near 1.3456

Sterling traded around 1.3456, up 0.14%, consolidating above 1.3400 as weak US labor data counterbalanced a neutral Bank of England outlook. Near-term support rests at 1.3410-1.3360, with resistance between 1.3480 and 1.3550. However, persistent Fed rate hike expectations and historically weak August seasonal trends continue to limit GBP upside.

From a technical view, resistance stands near 1.3500, with support around 1.3360.

Silver Extends Gains Above $60

Silver surged past $60 per ounce on Wednesday, making gains for a third consecutive session as easing geopolitical tensions reduced inflation fears. Progress on a Strait of Hormuz agreement sent crude prices lower, dropping September Fed rate hike probabilities to 57%. Despite hawkish central bank commentary, market attention now shifts to incoming ADP employment data.

From a technical view, resistance stands near $62.00, while support is located around $60.00.