Fed Rate Hike Strengthens Dollar (09.17.2026)

The Federal Reserve’s latest rate hike kept the dollar firmly supported, pushing the euro toward 1.15 and sterling below 1.35. 

Gold recovered toward $4,300 and silver approached $63.80 as easing oil prices offered some relief from inflation concerns, although higher Treasury yields continued to limit gains. The yen stabilized near 156.1 ahead of the Bank of Japan’s expected rate hike, while developments surrounding Middle East energy supplies remained an important driver across markets.

Euro Drops Near $1.15

The euro slipped toward $1.15, marking its lowest level since mid-August as a strong US dollar weighed on major currencies ahead of expected Federal Reserve rate hikes. Ongoing Middle East conflicts have kept crude oil prices above $100 per barrel, heightening inflation fears and driving sell-offs in government bonds. Following the European Central Bank's recent rate increase, market focus now shifts to upcoming central bank policy decisions worldwide.

The first resistance is positioned at 1.1480 while the support starts from 1.1430.

Gold Recovers Near $4,300

Gold rose toward $4,300 per ounce on Thursday, rebounding from prior losses as easing oil prices reduced immediate inflation fears. Crude markets cooled following reports that Saudi Arabia intends to restore East-West pipeline capacity quickly, while US officials confirmed significant oil shipments through the Strait of Hormuz. Still, gains remained limited after the Federal Reserve raised interest rates to 3.75%-4% and hinted at further tightening before year-end, driven by elevated US core inflation figures.

First resistance is seen at $4350, with initial support near $4260.

Yen Pauses Near 156.1

The Japanese yen hovered around 156.1 per dollar on Thursday following three straight days of losses, driven by a stronger dollar after the Federal Reserve raised interest rates. Markets now anticipate a Bank of Japan rate hike on Friday, with another increase expected by late January. Meanwhile, softening oil prices offered relief as Saudi Arabia works to restore pipeline capacity, following recent yen gains fueled by central bank intervention and capital repatriation.

First resistance is seen at 156.50, with initial support near 153.80.

Pound Dips Below $1.35

The British pound dropped under $1.35, hitting its lowest mark since early August. Strong demand for the US dollar ahead of a Federal Reserve rate increase weighed on the currency, while the Bank of England is expected to keep rates steady at 3.75%. Although recent figures revealed the strongest UK economic expansion in 18 months, surging oil costs from Middle East tensions complicate the inflation outlook, keeping investors focused on a potential November rate rise.

From a technical view, resistance stands near 1.4000, with support around 1.3350.

Silver Recovers Toward $63.80

Silver rose toward $63.80 per ounce on Thursday, recovering from earlier weakness as lower oil prices eased some inflation concerns and supported precious metals. However, upside remains constrained after the Federal Reserve raised rates by 25 basis points and signaled another potential hike this year. The resulting rise in Treasury yields and a stronger dollar remain key headwinds for silver, leaving the metal sensitive to further shifts in Fed expectations.

From a technical view, resistance stands near $64.80, while support is located around $62,70.