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High Yields and Fed Pressure Metals (09.29.2026)

Elevated Treasury yields and persistent expectations for further Federal Reserve tightening continued to shape market sentiment. 

Gold extended its decline below $4,150 and silver stabilized near $60.80 after steep losses, with high energy prices keeping inflation concerns elevated. EUR/USD remained below 1.1400, while sterling attempted a modest recovery near 1.325 amid hawkish Bank of England signals. The yen strengthened toward 156.90 as expectations for another Bank of Japan rate hike provided some support against the dollar.

TimeCur.EventForecastPrevious
11:00EURECB President Lagarde Speaks  
13:00USDS&P/CS HPI Composite - 20 n.s.a. (MoM) (Jul)0.4% 
13:00USDS&P/CS HPI Composite - 20 n.s.a. (YoY) (Jul)2.2%2.1%
14:00USDCB Consumer Confidence (Sep)90.189.4
14:00USDJOLTS Job Openings (Aug)7.230M7.271M
15:00GBPBoE MPC Member Mann Speaks  
15:00USDFOMC Member Bowman Speaks  
16:40USDFed Vice Chair for Supervision Barr Speaks  
18:00USDFOMC Member Williams Speaks  
18:00EURECB's Lane Speaks  
19:00USDFed Waller Speaks  
20:30USDAPI Weekly Crude Oil Stock 1.786M

EUR/USD Trades Below 1.1400

EUR/USD slipped below 1.1400 during early Asian trading on Monday, reaching a late-July low of 1.1358. Hawkish Federal Reserve commentary has raised expectations for an October rate increase above 65%, while Middle East tensions continue to increase safe-haven demand for the US dollar. Despite recent European Central Bank tightening, the euro remains under pressure. Technical indicators show oversold conditions, with traders looking to upcoming German economic data for further direction.

The first resistance is positioned at 1.1400 while the support starts from 1.1350.

R1: 1.1400S1: 1.1350
R2: 1.1450S2: 1.1320
R3: 1.1500S3: 1.1300

Gold Continues its Decline

Gold extended its decline on Monday, dropping under 4.150 per ounce and marking its lowest level since early August following a steep 4% loss in the prior session. The metal remains pinned below its 100-day moving average as multi-year high US Treasury yields and elevated oil prices support inflation expectations, weighing heavily on non-yielding bullion. Market participants now look to upcoming US inflation and labor market data for potential relief.

First resistance is seen at $4200, with initial support near $4080.

R1: 4200S1: 4080
R2: 4240S2: 4050
R3: 4320S3: 4020

USD/JPY Eases to 156.90

USD/JPY extended its pullback on Tuesday, easing to around 156.90 as the pair consolidates within a symmetrical triangle. Prices remain below both the 9- and 50-day moving averages, keeping the short-term bias tilted downward. While hawkish Federal Reserve rhetoric continues to support the US dollar, comments from a former Bank of Japan official suggesting a potential back-to-back rate hike in late October are providing fresh underlying support for the yen.

First resistance is seen at 159.50, with initial support near 157.00.

R1: 159.50S1: 157.00
R2: 161.10S2: 156.20
R3: 165.50S3: 155.00

GBP/USD Bounces Modestly to $1.3251

GBP/USD edged up to around $1.3251 on Tuesday, recovering slightly after an extended slide left its 14-day RSI oversold near 30. Bank of England officials delivered hawkish signals, with Deputy Governor Ramsden and Governor Bailey pointing to persistent inflation and energy costs as reasons further rate hikes remain possible. However, sluggish private-sector growth and weak labor demand continue to cap gains against a resilient US dollar, leaving traders focused on upcoming US inflation and labor data.

From a technical view, resistance stands near 1.3270, with support around 1.3170.

R1: 1.3270S1: 1.3170
R2: 1.3300S2: 1.3100
R3: 1.3350S3: 1.3000

Silver Trades Near $60.8

Silver stabilized around $60.8 per ounce on Tuesday following a nearly 6% slide in the prior session. Oil prices climbed as Iranian officials expressed doubt over securing a deal before the US midterm elections after President Donald Trump rejected Tehran's latest proposal. Unyielding energy costs continue to fuel inflation concerns, pushing Treasury yields to multi-year highs and intensifying pressure on the Federal Reserve to maintain aggressive monetary tightening.

From a technical view, resistance stands near $61.00, while support is located around $60,10.

R1: 61.00S1: 60.10
R2: 62.10S2: 59.50
R3: 63.00S3: 58.90
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