Currency markets remained volatile as ongoing Middle East tensions continued to shape global sentiment.
The euro slipped to a three-month low near $1.156 as investors favored the safety of the U.S. dollar and rising energy prices fueled inflation concerns in the eurozone. Meanwhile, the Japanese yen recovered modestly on improved domestic data and easing oil pressure. Precious metals moved higher as the dollar softened, with gold rebounding toward $5,180 and silver recovering strongly after a brief drop. Sterling also remained under pressure near multi-month lows amid geopolitical tensions and shifting expectations for Bank of England policy.
| Time | Cur. | Event | Forecast | Previous |
| 177.4B | 114.11B | |||
14:00 | USD | Existing Home Sales (Feb) | 3.89M | 3.91M |
On Tuesday, the euro dropped to $1.156, a three-month low, as investors favored the US dollar amid persistent Middle East conflict. Surging energy costs have intensified eurozone inflation fears, prompting ECB official Isabel Schnabel to warn against complacency. Market expectations have shifted significantly as a result; swap markets now price in two 25-basis-point rate hikes this year, doubling the forecast from just last Friday.
For EUR/USD, the initial resistance is seen at 1.1580, while the closest support is positioned at 1.1480.
| R1: 1.1650 | S1: 1.1480 |
| R2: 1.1690 | S2: 1.1420 |
| R3: 1.1710 | S3: 1.1350 |
The Japanese yen strengthened to 157.6 per dollar after nearly hitting 159. Easing energy prices provided relief to Japan’s oil-dependent economy, while cooling dollar demand supported the recovery. Furthermore, strong domestic indicators, including a revised 0.3% Q4 GDP growth and rising real wages, have reinforced the Bank of Japan’s path toward continued policy normalization.
Technically, resistance stands near 159.00, while support is firm at 157.70.
| R1: 159.00 | S1: 157.50 |
| R2: 159.40 | S2: 157.00 |
| R3: 159.80 | S3: 156.40 |
Gold climbed to approximately $5,180 per ounce, recovering from earlier losses. The dollar’s retreat and optimism over a potential end to the Iran conflict drove the rebound. Market participants now look to upcoming US CPI and PCE data for insight into Fed monetary policy.
Gold sees support near $5000, while resistance is around $5210.
| R1: 5200 | S1: 5090 |
| R2: 5230 | S2: 4910 |
| R3: 5270 | S3: 4840 |
Sterling fell to $1.33, a three-month low, pressured by a surging US dollar and UK political friction. The dollar gained from safe-haven flows after President Trump demanded Iran’s unconditional surrender. Meanwhile, rising energy costs have led markets to price in a 70% chance of a Bank of England rate hike. The pound also faced pressure as Prime Minister Keir Starmer prioritized diplomatic solutions over joining initial US-Israel strikes. Trump dismissed UK plans to deploy HMS Prince of Wales, labeling Britain a “once great ally,” despite recent talks between the leaders.
From a technical view, support stands near 1.3400, with resistance around 1.3250.
| R1: 1.3500 | S1: 1.3250 |
| R2: 1.3530 | S2: 1.3140 |
| R3: 1.3580 | S3: 1.3030 |
Silver climbed to approximately $89 per ounce, recovering from a brief dip below $80. This rebound was fueled by a softening US dollar and growing optimism for a swift resolution to Middle East tensions. Additionally, President Trump’s comments regarding easing oil-related pressures further supported the metal's gains.
From a technical view, resistance stands near $81.50 while support is located around $78.00.
| R1: 90.00 | S1: 85.00 |
| R2: 92.20 | S2: 80.30 |
| R3: 95.50 | S3: 77.40 |
Fed Inflation Concerns RemainThe latest Federal Reserve minutes show that inflation remains a central concern for policymakers, even as recent economic data has reduced the urgency for another rate increase. Some officials believe price pressures are becoming more widespread, while a smaller group directly supported further tightening.
Detail
Dollar Falls on Debt Concerns as Yields Rise (24 – 28 August)Global markets entered the week with the US dollar under continued pressure as concerns over federal debt and Treasury market management moved to the center of investor attention. The Dollar Index hovered near 98.8 following sharp losses in the previous week, while the US Treasury’s expanded bond buyback programme pushed longer-term yields and the dollar lower. The move supported gold, silver, and major currencies, while investors assessed its longer-term implications for US borrowing costs and the yield curve.
Detail Persistent USD Weakness Lifts Yields (08.24.2026)Global markets remained shaped by persistent U.S. dollar weakness, shifting central bank expectations, and renewed Middle East risks.
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