Currencies Advance as Oil Concerns Ease (05.26.2026)

Improving prospects for a US-Iran agreement supported risk sentiment and reduced demand for the US dollar.

The euro and British pound advanced, helped by expectations that a potential deal could ease pressure on energy markets and lower inflation risks.

Reports of US military operations in southern Iran reminded markets that tensions remain unresolved. This combination of diplomatic progress and ongoing security concerns limited moves in traditional safe havens.

Gold slipped below $4,550, silver gave back part of its recent rebound, and the Japanese yen remained range-bound as traders weighed geopolitical developments against central-bank expectations.

EUR/USD Recovers Lost Ground

The euro climbed to $1.163, recovering from a six-week low as improving prospects for a US-Iran agreement weighed on oil prices and reduced demand for the dollar.

Secretary of State Marco Rubio described the proposed agreement as “pretty solid.”

For EUR/USD, the initial resistance is seen at 1.1660, while the closest support is positioned at 1.1580.

Gold Pulls Back as Risks Compete

Gold slipped below $4,550 as traders weighed conflicting developments from the Middle East.

Reports indicated that the US Central Command targeted missile launch sites and vessels suspected of mine-laying activity in southern Iran, while Washington continued diplomatic discussions with Tehran. Trump said negotiations were progressing well but warned that military action could intensify if talks fail.

First resistance is seen at $4590, with initial support near $4500.

The Yen Stays Range-Bound

The Japanese yen traded near 159 per dollar, holding a narrow range.

Despite the heightened tensions across the globe, the currency remained mostly stable as traders balanced risks against expectations for future Bank of Japan policy.

Initial resistance stands at 159.50, while the first support is located at 158.20.

The Pound Extends Its Advance

Sterling strengthened toward $1.35, reaching its highest level since May 13 as improving prospects for a US-Iran agreement improved market sentiment. The pound also drew support from reduced expectations for additional Bank of England tightening following a series of softer UK economic reports.

From a technical view, resistance stands near 1.3520, with support around 1.3440.

Silver Recovery Loses Pace

Silver fell below $77 per ounce, giving back part of the previous session’s gains.

From a technical view, resistance stands near $77.70 while support is located around $75.