Fed Hike Sets the Tone for Markets (09.18.2026)

Monetary policy remained a key driver at the end of the week following the Federal Reserve’s first rate hike since July 2023. 

The euro stayed below 1.15, while sterling traded under 1.34 after the Bank of England left rates unchanged but kept the possibility of further tightening open. Gold held near $4,380 and silver extended its recovery above $66 as falling oil prices eased inflation concerns and pulled bond yields lower. Meanwhile, the yen weakened beyond 156 as investors awaited the Bank of Japan’s policy decision.

Euro Holds Below $1.15

The euro traded just under $1.15, lingering near its lowest level since late July as the US dollar gained ground after the Federal Reserve's policy decision. The Fed raised its benchmark interest rate to 3.75%-4%, marking its first rate increase since July 2023. This move aims to tame persistent inflation, with officials signaling that an additional rate hike remains possible before the year ends.

The first resistance is positioned at 1.1520 while the support starts from 1.1450.

Gold Holds Near $4,380

Gold traded near $4,380 an ounce on Friday following a 2% gain in the previous session. Falling oil prices helped ease inflation worries and pushed bond yields lower, enhancing the appeal of the non-yielding metal as investors adjusted their market outlooks.

First resistance is seen at $4400, with initial support near $4350.

Yen Depreciates Near 156

The Japanese yen slipped past 156 per dollar on Friday, trading near a two-week low. Investors remained cautious while awaiting the Bank of Japan's upcoming monetary policy decision, with markets broadly pricing in an interest rate hike.

First resistance is seen at 157.25, with initial support near 155.80.

Pound Holds Below $1.34

The British pound remained under $1.34, lingering near its lowest level since late July after the Bank of England held interest rates at 3.75% in a 6-3 vote. Central bank officials signaled that further monetary tightening might become necessary if escalating Middle East conflict sparks a fresh wave of inflationary pressure.

From a technical view, resistance stands near 1.3420, with support around 1.3330.

Silver Advances Above $66.6

Silver traded above $66.6 an ounce on Friday following a 3% surge in the prior session. Falling oil prices helped ease inflation worries and lower bond yields, creating a supportive backdrop for non-yielding precious metals as market sentiment improved.

From a technical view, resistance stands near $67.00, while support is located around $64,00.