Calmer Tone, No Relief Yet (05.19.2026)

A calmer tone around possible US–Iran negotiations slightly eased pressure across bond and currency markets, leaving the dollar index near 99 and US Treasury yields close to 4.6%.

Oil prices remained firm, keeping inflation concerns and expectations of restrictive Fed policy in the background.

Japan's strong GDP growth and hawkish comments from BOJ policymaker Kazuyuki Masu kept 10-year government bond yields near multi-decade highs around 2.75%, reinforcing the view that further tightening may still be on the table.

On Wall Street, stock futures struggled to recover after back-to-back declines led by technology shares. Pressure on chipmakers followed comments from Seagate CEO Dave Mosley, who warned about potential difficulties in scaling production fast enough to meet rising AI demand.

Euro Recovery Starts Losing Steam

EUR/USD stayed near the 1.1640 region before the upcoming US PMI data and fresh central bank signals. Firm US economic figures and elevated Treasury yields continued to support the dollar, while Middle East tensions added pressure across currency markets. In the Eurozone, slowing growth and persistent inflation kept expectations alive for additional ECB tightening later this year.

For EUR/USD, the initial resistance is seen at 1.1700, while the closest support is positioned at 1.1610.

The Gold Rally Meets Another Wall

Gold slipped below $4,550 per ounce, giving back part of its recent rebound as hopes surrounding US–Iran negotiations reduced safe-haven demand.

Rising oil prices and persistent inflation pressures continued to strengthen expectations that the Federal Reserve may keep interest rates high for longer. Upcoming FOMC minutes and PMI data remain the next major focus for price direction.

First resistance is seen at $4580, with initial support near $4500.

Yen Climbs to Familiar Intervention Territory

The yen weakened toward 159 per dollar despite strong Japanese growth data, extending its recent decline as the dollar remained firm across major currencies.

Japan’s economy expanded 0.5% in the first quarter, reinforcing expectations for gradual Bank of Japan tightening, while energy prices and Middle East uncertainty continued supporting the dollar. Attention remained fixed on the 160 level, where intervention concerns continue building.

Initial resistance stands at 160.00, while the first support is located at 156.80.

Pound Struggles to Build Momentum

GBP/USD stayed near the 1.34 area as firm Treasury yields and resilient US inflation data continued supporting the dollar.

Domestic uncertainty and rising gilt yields limited upside momentum for sterling, while support above 1.3300 kept the pair within a broader consolidation range ahead of fresh macroeconomic data.

From a technical view, resistance stands near 1.3340, with support around 1.3300.

Inflation Concerns Keep Silver Under Strain

Silver slipped toward $76 per ounce as easing safe-haven demand and persistent inflation concerns pressured sentiment.

Hopes surrounding progress in US-Iran negotiations reduced defensive positioning, while rising oil prices and tighter monetary policy expectations continued limiting upside momentum. FOMC minutes and PMI data remain the next key drivers for the metal.

Technically, resistance is seen near $76.70, while support stands around $73.50.