Central Banks Take Center Stage (07.31.2026)

Global markets assessed a series of major central bank decisions as investors balanced the Federal Reserve's rate hold with hawkish signals from the Bank of England and Bank of Japan. 

The dollar index traded near 100, down over 1% for the week following three straight declining sessions, pressured by the Fed's cautious stance and suspected Japanese intervention. Softer U.S. growth data weighed on the dollar, while resilient Eurozone economic figures supported the euro. Meanwhile, renewed U.S.–Iran tensions continued to underpin inflation concerns, keeping pressure on precious metals and maintaining demand for safe-haven assets.

Euro Consolidates Near 1.1500

EUR/USD range-traded near 1.1450–1.1500, absorbing the Fed's rate hold and weak U.S. GDP growth alongside resilient Eurozone GDP data that supported ECB rate-hike expectations. However, geopolitical safe-haven dollar demand from U.S. strikes on Iran capped euro upside. Technical indicators suggest easing downside momentum, with key support around 1.1390 and resistance at 1.1500.

The first resistance is positioned at 1.1550 while the support starts from 1.1470.

Gold Slides Below $4,100

Gold fell below $4,100, halting a two-day rally, yet remained positioned for its first monthly gain in five months. Bullion found support after the Federal Reserve kept interest rates unchanged, though a 63% probability of a September rate hike capped gains. Meanwhile, renewed U.S. strikes on Iran diminished near-term diplomatic prospects, maintaining ongoing pressure on gold prices.

First resistance is seen at $4120, with initial support near $4020.

USD/JPY Rebounds Toward 160.50

USD/JPY rebounded strongly to near 160.50, recovering from a two-month low of 157.97 driven by suspected intervention and a hawkish hold by the Bank of Japan. The BOJ maintained rates at 1.00% while highlighting elevated inflation risks. The Fed's 9–3 rate hold continues supporting the dollar, with the pair testing resistance at 161.00–161.50.

Initial resistance stands at 161.70, while the first support is at 159,50.

Sterling Pauses Near 1.3450

GBP/USD consolidated near 1.3450 following a 130-pip rally to 1.3476, driven by key central bank decisions. The Bank of England kept rates at 3.75% with a hawkish 6–3 vote split, pointing to Middle East inflation risks. Meanwhile, a slight dollar rebound off sub-100 levels capped sterling's momentum amid safe-haven flows.

From a technical view, resistance stands near 1.3490, with support around 1.3260.

Silver Eases Toward $58

Silver dipped toward $58, snapping a two-day winning streak, but remains set to finish July virtually flat following a steep drop in June. The metal found underlying support after the Federal Reserve held interest rates unchanged despite geopolitical inflation risks, though a 63% chance of a September rate hike limited further upside. Ongoing U.S. strikes in Iran continue weighing on precious metals.

From a technical view, resistance stands near $58.90, while support is located around $56.80.