Markets Are at Multi-Month Extremes (06.25.2026)

Global markets remained under pressure on Thursday as the U.S. dollar extended its rally on growing expectations of additional Federal Reserve tightening. 

The euro fell to a one-year low, while the Japanese yen hovered near levels not seen since the 1980s despite ongoing intervention warnings. Precious metals continued to struggle, with gold and silver trading near eight-month lows as higher yields and a stronger dollar reduced demand. At the same time, weak economic data from Europe and the UK reinforced concerns that slowing growth and restrictive monetary policy are creating a challenging environment for risk assets.

Euro Goes Back to One-Year Low

The euro tumbled to $1.136, hitting its lowest level in a year as a dominant dollar and aggressive Federal Reserve rate hike projections hammered the single currency. Although the European Central Bank delivered a 25 basis point increase, President Christine Lagarde suppressed expectations for subsequent tightening. Compounding the regional gloom, Germany's private sector suffered its sharpest contraction since 2024, dragging the broader Eurozone economy deeper into negative territory.

The first resistance is positioned at 1.1400 while the support starts from 1.1320.

Gold Struggles Near Eight-Month Lows

Gold stabilized near $4,000 per ounce on Thursday, languishing at its lowest mark in eight months as a dominant US dollar and hawkish Federal Reserve rate hike expectations weighed on the market. The climbing dollar rendered the precious metal costly for international buyers, restricting broader demand. While diplomatic breakthroughs in U.S.–Iran peace talks cooled global inflation fears, market positioning for a September rate hike under Fed Chair Kevin Warsh effectively blocked any near-term price recovery.

First resistance is seen at $4040, with initial support near $3960.

Yen Hovers Near Historic Lows

The Japanese yen hovered around 161.7 per dollar on Thursday, remaining near its lowest level since 1986 as official verbal warnings failed to lift the currency. A strong dollar and stark U.S.–Japan yield differentials sustained heavy pressure, while diminished reserves reduced market expectations for direct intervention. Meanwhile, Bank of Japan minutes revealed that policymakers generally support ongoing interest rate increases to hit their 2% inflation target.

Initial resistance stands at 162.20, while the first support is at 161.00.

Pound Slips Below $1.32

The British pound broke below $1.32, hitting a seven-month low as June's composite PMI tumbled to 49.4, marking consecutive months of economic contraction. While Keir Starmer's resignation calmed Labour leadership anxieties with Andy Burnham leading the field, climbing input costs and stubborn services inflation continue to challenge the Bank of England's monetary strategy.

From a technical view, resistance stands near 1.3240, with support around 1.3150.

Silver Is Near Eight-Month Lows

Silver stabilized around $57 per ounce on Thursday, hovering near its lowest level since November as a strong dollar and hawkish Federal Reserve rate hike projections suppressed market momentum. The surging dollar heightened acquisition costs for international buyers, reducing demand. Though diplomatic progress between the U.S. and Iran cooled inflation fears, market expectations for a September rate hike under Fed Chair Kevin Warsh successfully capped any price recovery.

From a technical view, resistance stands near $59.25, while support is located around $56.50.