Markets turned defensive again as renewed geopolitical uncertainty strengthened the U.S. dollar following President Trump’s latest remarks on the Middle East.
The euro slipped toward $1.15, while the British pound also declined to multi-month lows as risk sentiment weakened. The Japanese yen remained under pressure near the 160 level amid rising energy costs. In commodities, gold extended its pullback toward $4,600 and silver continued to slide, reflecting the impact of stronger dollar demand and persistent inflation concerns. Overall, markets remain sensitive to geopolitical developments and shifting expectations around monetary policy.
| Time | Cur. | Event | Forecast | Previous |
| 17:00 | USD | ISM Non-Manufacturing Prices (Mar) | - | 63.0 |
| 17:00 | USD | ISM Non-Manufacturing PMI (Mar) | 54.8 | 56.1 |
The euro softened toward $1.15 as caution took hold following Donald Trump’s address. Although he indicated US operations in the Middle East were nearing completion, the lack of a clear exit timeline and hints of potential escalations raised the dollar, weighing on the currency pair.
For EUR/USD, the initial resistance is seen at 1.1590, while the closest support is positioned at 1.1500.
| R1: 1.1590 | S1: 1.1500 |
| R2: 1.1640 | S2: 1.1440 |
| R3: 1.1700 | S3: 1.1400 |
Gold fell toward $4,600 per ounce on Monday, continuing its decline as geopolitical risks escalated. The slide followed Donald Trump’s ultimatum to Iran, warning of infrastructure strikes if the Strait of Hormuz remains closed, which further strengthened the dollar.
First resistance is seen at $4720, with initial support near $4580.
| R1: 4720 | S1: 4580 |
| R2: 4860 | S2: 4500 |
| R3: 4970 | S3: 4420 |
The Japanese yen hovered near 159.5 per dollar, close to its weakest level since July 2024, as escalating tensions in Iran and rising energy prices continued to pressure the currency, with President Donald Trump’s strike warnings.
Technically, resistance stands near 159.90, while support is firm at 158.50.
| R1: 159.80 | S1: 158.50 |
| R2: 160.40 | S2: 157.60 |
| R3: 161.00 | S3: 157.20 |
The British pound fell toward $1.32, nearing its lowest point since November as investor caution returned. Despite Donald Trump signaling that US operations are nearly finished, his failure to provide a clear resolution and warnings of further aggressive measures increased the dollar, weighing on the pair.
From a technical view, support stands near 1.3320, with resistance around 1.3170.
| R1: 1.3320 | S1: 1.3170 |
| R2: 1.3430 | S2: 1.3110 |
| R3: 1.3480 | S3: 1.3000 |
Silver fell to approximately $72, extending its decline. The metal has dropped over 20% since the Middle East conflict started, as heightened inflation and expectations for higher interest rates continue to support the dollar at its expense.
From a technical view, resistance stands near $74.20 while support is located around $71.50.
| R1: 74.20 | S1: 71.50 |
| R2: 78.50 | S2: 70.00 |
| R3: 80.00 | S3: 68.00 |
Fed Turns Hawkish (31 August – 4 September)Global markets entered the week with renewed focus on Federal Reserve tightening after Chair Kevin Warsh used his Jackson Hole address to push back against expectations that US inflation pressures were fading. The Dollar Index held near 99.6 after Friday’s sharp advance, while Treasury yields moved higher and precious metals retreated. Markets raised the probability of a September Fed rate hike to 57% from 40% a week earlier as Warsh reiterated the Fed’s commitment to returning inflation to its 2% target.
Detail
Hawkish Fed Lifts Dollar, Pressures Markets (08.31.2026)Global markets came under pressure after Fed Chair Kevin Warsh’s hawkish remarks strengthened expectations for a September rate hike.
Global markets traded cautiously ahead of Fed Chair Kevin Warsh’s Jackson Hole speech as investors assessed persistent U.S. inflation and shifting interest rate expectations.
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