Growth Slows, Inflation Lingers (04.28.2026)

The Bank of Japan held its policy rate at 0.75% in April, keeping borrowing costs at their highest level since 1995.

Growth for FY2025 was revised up to 1.0%, while the FY2026 outlook was cut to 0.5% amid Middle East-related headwinds. Inflation expectations for FY2026 rose to 2.8% on higher energy and goods prices.

In the US, the 10-year Treasury yield climbed to around 4.35%, a one-month high, as markets positioned for the upcoming Federal Reserve meeting, where rates are widely expected to remain unchanged.

The dollar index stabilized near 98.5 as proposals to reopen the Strait of Hormuz eased demand for defensive positioning, though negotiations remain unresolved.

Inflation Gives the Euro a Pulse

EUR/USD traded near 1.1720 in early Tuesday dealings, supported by firmer inflation expectations across the Eurozone. Market positioning suggests the European Central Bank is likely to keep borrowing costs unchanged while allowing more time to assess incoming data, helping the euro retain a steady footing.

Initial resistance is seen at 1.1750, while the nearest support stands at 1.1670.

Gold Tests Lower Ground

Gold eased toward $4,650, extending its recent retreat as attention shifted to renewed dialogue between Washington and Tehran.

Reports that Iran may reopen the Strait of Hormuz in exchange for easing restrictions reshaped expectations around supply risks and inflation pressures, limiting demand for the metal.

First resistance is seen at $4730, with initial support near $4615.

Tokyo Hits Pause, Yen Steady

The yen moved back toward 159 per dollar after the Bank of Japan left policy settings unchanged, while updating projections to reflect stronger inflation and slower growth in fiscal year 2026.

The revisions highlighted the economic strain linked to higher energy costs, keeping policymakers attentive to currency stability.

Initial resistance stands at 159.50, while the first support is located at 158.60.

Sterling Finds Balance Above $1.35

The pound remained above $1.35, recovering from recent lows as markets prepared for a packed calendar of economic releases and central bank decisions. Current pricing points to the Bank of England maintaining its policy rate at 3.75%, providing a stable backdrop for the currency.

From a technical view, resistance stands near 1.3570, with support around 1.3480

A Cooling Phase for Silver

Silver traded under $75 per ounce, continuing its downward move as supply disruptions and persistent inflation pressures shaped demand across industrial metals. Renewed diplomatic activity added another layer of uncertainty, keeping price action subdued.

Resistance is seen near $76.70, while support is located around $73.90.