Global markets traded cautiously as shifting Federal Reserve expectations and easing geopolitical risks continued to shape sentiment. President Trump warned he'll bomb Oman if it stands in Washington's way, as reports suggest Iran and Oman are moving toward a deal on Strait of Hormuz control.
The dollar index traded near 99.5 Tuesday, hovering close to two-month lows as soft US data pared back Fed rate hike bets for the year. EUR/USD gained momentum near 1.1580, while sterling held above 1.35 as the dollar remained under pressure. Gold stayed above $4,400, though silver eased toward $65 amid profit-taking and renewed inflation concerns. Meanwhile, the yen weakened toward 159.5 as fiscal concerns, elevated energy costs, and wide interest rate differentials outweighed expectations for further Bank of Japan tightening.
| Time | Cur. | Event | Forecast | Previous |
| 11:45 | EUR | ECB’s Lane Speaks | ||
| 13:15 | USD | Industrial Production (MoM) (Jul) | 0.3% | 0.1% |
EUR/USD trades near 1.1580, showing solid structural momentum as shifting Fed rate expectations and ECB policy balance drive price action. Key resistance holds at 1.1600–1.1640, with support near 1.1530. Traders now look toward upcoming US CPI, payrolls, and Eurozone PMI data, while easing geopolitical tension keeps the dollar under pressure and reinforces the euro.
The first resistance is positioned at 1.1600 while the support starts from 1.1530.
| R1: 1.1600 | S1: 1.1530 |
| R2: 1.1640 | S2: 1.1480 |
| R3: 1.1710 | S3: 1.1420 |
Gold slipped below $4,400/oz Tuesday as bond yields hit multi-year highs on inflation and spending worries, with rising oil prices adding pressure. Fading US-Iran deal prospects also weighed on sentiment. Still, gold found support as markets now expect the Fed to hold rates steady in September, dropping earlier bets on a year-end hike after weak US data. Strong investment demand and ongoing central bank buying, especially from China, continued to underpin bullion.
First resistance is seen at $4420, with initial support near $4360.
| R1: 4420 | S1: 4360 |
| R2: 4450 | S2: 4310 |
| R3: 4500 | S3: 4250 |
The Japanese yen eased toward 159.5 per dollar on Tuesday, surrendering recent gains under the weight of fiscal worries and persistent inflation. Proposed food consumption tax cuts sparked funding concerns, while high energy costs weighed on sentiment. Wide interest rate differentials continued to pressure the currency as global yields climbed, with traders anticipating a potential Bank of Japan rate increase in September.
First resistance is seen at 160.00, with initial support near 158.60.
| R1: 160.00 | S1: 158.60 |
| R2: 162.10 | S2: 157.30 |
| R3: 162.50 | S3: 155.80 |
GBP/USD trades steadily near 1.3530, consolidating after recovering from earlier spring lows. Technical resistance caps gains around 1.365–1.370, while support sits firm between 1.34 and 1.35. Sticky UK services inflation continues to temper aggressive Bank of England rate-cut bets, supporting sterling yields as the dollar consolidates ahead of upcoming Federal Reserve monetary policy signals.
From a technical view, resistance stands near 1.3570, with support around 1.3510.
| R1: 1.3570 | S1: 1.3510 |
| R2: 1.3600 | S2: 1.3460 |
| R3: 1.3640 | S3: 1.3420 |
Silver pulled back toward $65 per ounce on Tuesday, surrendering recent gains as broader metals profit-taking and rising oil prices stirred inflation concerns. Diminished prospects for a US-Iran diplomatic resolution weighed on sentiment. However, silver found underlying support from reduced Federal Reserve rate-hike expectations alongside strong industrial demand across green energy, electric vehicles, and artificial intelligence infrastructure.
From a technical view, resistance stands near $66.20, while support is located around $64.40.
| R1: 66.20 | S1: 64.40 |
| R2: 67.50 | S2: 63.50 |
| R3: 69.25 | S3: 61.20 |
Easing oil prices and retreating Treasury yields (around 5.23% ) provided some relief to financial markets as improving US-Iran diplomatic prospects reduced immediate inflation concerns.
Hawkish Federal Reserve meeting minutes reinforced expectations for another rate hike this year, pushing Treasury yields higher and supporting the US dollar.
Oil inventories are nearing depletion, increasing supply risks and supporting prices. Aramco estimates less than 6 billion barrels remain after over 1 billion barrels were drawn this year, while the IEA is preparing a 100-million-barrel release. The US 10-year Treasury yield stabilized near 5.31% on Wednesday, close to 24-year peaks, as markets awaited the Fed's minutes.
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