Dollar Strength Persists as Risks Rise (06.11.2026)

Markets remained cautious on Thursday as investors balanced rising geopolitical risks with key central bank expectations. The dollar index neared a two-month high at 100 as Middle East conflict risks and inflation acceleration kept December Fed hike bets alive. 

The euro stayed near its lowest levels in more than two months ahead of a widely expected ECB rate hike, while elevated energy costs continued to fuel inflation concerns across major economies. Gold and silver remained under pressure as stronger inflation data reinforced expectations for tighter monetary policy, while the yen hovered near two-year lows despite growing bets on further Bank of Japan tightening.

Euro Near Multi-Month Lows

The euro stabilized near $1.154, remaining close to its lowest point in over two months as escalating U.S.–Iran frictions spurred safe-haven flows. Market participants are focused on the ECB's impending policy meeting, where a 25 basis point interest rate increase is broadly anticipated. Energy-driven inflation pressures from Middle East conflict persist, keeping the spotlight on President Christine Lagarde for future policy guidance.

For EUR/USD, the initial resistance is seen at 1.1570, while the closest support is positioned at 1.1520.

Gold Settles Below $4,100

Gold dipped under $4,100 on Thursday as market participants weighed changing Middle East dynamics. Anticipation of fresh diplomatic negotiations following the conclusion of recent U.S. strikes on Iran helped soothe broader geopolitical anxieties. Nonetheless, active energy supply bottlenecks and sticky inflation limited the metal's decline. In addition, U.S. inflation climbed to a multi-year high, cementing expectations for a Federal Reserve interest rate increase later this year.

First resistance is seen at $4120, with initial support near $4000.

Yen Soft Near 160.5

The Japanese yen traded near 160.5 against the dollar on Thursday, remaining close to a two-year low. Higher producer inflation, driven by surging energy costs, has intensified expectations that the Bank of Japan will hike interest rates next week. Market participants are monitoring Governor Kazuo Ueda for policy signals, with additional monetary tightening increasingly priced in for later this year.

Initial resistance stands at 160.90, while the first support is located at 159.40.

Pound Pressured Near $1.34

The British pound traded just under $1.34 as mounting Middle East frictions and expectations of tighter Bank of England policy drove sentiment. Fresh U.S.–Iran military actions heightened geopolitical risk, while rising energy costs worsened inflation anxieties. Markets now fully price in at least one BoE rate hike by September, despite internal policymaker debate over whether current monetary settings are already sufficiently restrictive.

From a technical view, resistance stands near 1.3410, with support around 1.3320.

Silver Stabilizes Above $63

Silver held above $63 on Thursday as markets assessed fluid Middle East developments. While the conclusion of recent U.S. military strikes on Iran raised hopes for diplomatic talks and tempered immediate inflation fears, friction in the Strait of Hormuz and persistent supply bottlenecks kept the metal near multi-week lows. Furthermore, U.S. inflation hit a three-year high, cementing expectations for a Federal Reserve rate hike later this year.

From a technical view, resistance stands near $65.00, while support is located around $61.50.