Geopolitics Lift Dollar, Pressure Euro (01.06.2026)

The U.S. dollar traded steadily near 98.4 after a volatile start to the week, as fading concerns over Venezuela offset uncertainty around the Federal Reserve’s policy outlook. 

The euro slipped below 1.17 as geopolitical tensions tied to Venezuela triggered a rush into the US dollar ahead of key US jobs and inflation data. The yen edged lower amid ongoing uncertainty over BoJ policy, while gold and silver extended strong safe-haven rallies. Sterling stalled near 1.35 in thin trading, with direction likely to depend on upcoming US data and broader risk sentiment.

Euro Slips as Geopolitics Support Dollar

The euro dropped below $1.17, reaching its lowest level since early December and marking its steepest decline since October. This slide followed the U.S. capture of Venezuelan President Nicolás Maduro, as President Trump’s remarks on a temporary U.S. administration in Venezuela and increased energy involvement sparked a rush to the dollar. Investors are now pivoting toward Friday’s U.S. jobs report and upcoming inflation data, while steady ECB signals and a potential shift in Fed leadership add to the market's uncertainty.

Technically, 1.1670 is the key support, while resistance is seen at 1.1760.

Yen Edges Lower Amid BoJ Uncertainty

USD/JPY climbed toward 156.30 during Tuesday's Asian session, consolidating after a recent retreat from two-week highs. Persistent doubt regarding the timing of Bank of Japan rate hikes, combined with an improving global risk mood, continues to weigh on the safe-haven yen. This downward pressure persists despite a broader wave of selling interest affecting the U.S. dollar, providing steady support for the pair.

Technically, resistance stands near 157.20, while support is firm at 155.90.

Gold Extends Rally Past $4,450

Gold prices climbed above $4,450 per ounce on Tuesday, marking a third straight day of gains. This surge is fueled by a rush to safe-haven assets following the U.S. military operation that removed Venezuelan President Nicolás Maduro. While President Trump’s comments on temporary U.S. oversight have heightened market uncertainty, investors are now shifting their focus toward upcoming U.S. employment data and future Federal Reserve guidance.

Gold sees support near $4400, while resistance is around $4500.

Sterling Stalls Near 1.3550

GBP/USD hovered around 1.3550 on Tuesday, struggling to maintain upward momentum. The pair remains restricted near the psychologically key 1.35 level, where buyers have yet to take full control. Given thin liquidity and subdued volatility, price action is expected to remain choppy. A decisive move above this zone could spark a fresh rally, while a failure to hold may turn the focus toward key moving-average supports.

From a technical view, support stands near 1.3420, with resistance around 1.3590.

Silver Nears $79 Amid Global Tensions

Silver surged above $76.50, trading near $78.55 on Tuesday as geopolitical instability in Venezuela sparked a flight to safety. Investor caution has intensified following the U.S. capture of Nicolás Maduro and signals of further military involvement. Beyond safe-haven demand, silver remains supported by expectations of U.S. rate cuts later this year. Markets are now pivoting toward Friday’s jobs report for clearer direction on the Federal Reserve’s next move.

From a technical view, resistance stands near $80.00 while support is located around $76.50.