Global markets remained cautious as rising inflation and escalating Middle East tensions continued to shape investor sentiment.
The euro held near 1.165 as Eurozone price pressures accelerated to their strongest pace in more than two years, reinforcing expectations that the ECB may need to tighten policy further. Gold and silver stayed under pressure as energy-driven inflation strengthened the case for higher interest rates, while the Japanese yen hovered near the critical 160 level amid growing intervention speculation. Sterling edged higher as traders monitored developments in the Middle East and assessed their implications for global growth, inflation, and central bank policy.
| Time | Cur. | Event | Forecast | Previous |
| 13:30 | USD | Initial Jobless Claims | 214K | 215K |
EUR/USD stabilized around 1.165 as investors assessed accelerating Eurozone inflation alongside ongoing Middle East friction. Spurred by high energy costs, consumer prices advanced at their fastest pace in over two years. Accelerating core and services figures further heighten concerns that regional inflationary pressures are expanding well beyond the energy sector.
For EUR/USD, the initial resistance is seen at 1.1650, while the closest support is positioned at 1.1570.
| R1: 1.1650 | S1: 1.1570 |
| R2: 1.1700 | S2: 1.1520 |
| R3: 1.1780 | S3: 1.1450 |
Gold hovered near $4,450, facing a 2% weekly loss as markets price in potential rate hikes to counter energy driven inflation. Geopolitical friction intensified following direct military exchanges between Washington and Tehran. This confrontation has severely undermined prospects for a diplomatic resolution, marking the most significant escalation since the ceasefire was established earlier this year.
First resistance is seen at $4510, with initial support near $4425.
| R1: 4510 | S1: 4425 |
| R2: 4590 | S2: 4390 |
| R3: 4650 | S3: 4340 |
The Japanese yen hovered near 159.9 against the dollar, remaining just below the critical 160 level that previously triggered official market intervention. Renewed Middle East friction has fortified safe haven demand for the greenback, keeping the yen under pressure and increasing speculation that Japanese authorities will step in if depreciation accelerates further.
Initial resistance stands at 160.30, while the first support is located at 159.40.
| R1: 160.30 | S1: 159.40 |
| R2: 160.90 | S2: 158.30 |
| R3: 161.50 | S3: 157.50 |
The British pound edged up to $1.347 as investors sought clarity on Middle East peace initiatives. Market focus remained on conflicting accounts from U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu regarding their talks on the Lebanon conflict. While Trump asserted he urged an immediate halt to hostilities, Netanyahu offered a significantly less definitive interpretation of the discussion.
From a technical view, resistance stands near 1.3510, with support around 1.3390.
| R1: 1.3510 | S1: 1.3390 |
| R2: 1.3560 | S2: 1.3340 |
| R3: 1.3630 | S3: 1.3300 |
Silver remained weak near $73 following a steep drop in the previous session. Markets are closely watching the inflationary fallout of surging energy costs caused by ongoing Middle East conflict. Prospects of additional central bank interest rate hikes to curb this rising inflation continue to damp sentiment, capping demand for non yielding precious metals.
From a technical view, resistance stands near $76.20, while support is located around $72.40.
| R1: 76.20 | S1: 72.40 |
| R2: 78.80 | S2: 71.50 |
| R3: 80.50 | S3: 68.50 |
Fed, BOJ Hikes Lift Dollar as Oil Falls (21 – 25 September)Global markets entered the week balancing tighter monetary policy against signs of easing Middle East energy risks. The Federal Reserve remains the main macro driver after raising rates to 3.75%–4.00%, its first hike since 2023, and signaling that another increase remains possible this year. The Dollar Index advanced to 100.4, while Treasury yields remained elevated. The Bank of Japan also tightened policy, raising rates to 1.25%, although dissent within the board suggested that future increases could come at a slower pace.
Detail Falling Oil Prices Support Metals (09.21.2026)Easing oil prices offered some relief to financial markets as renewed diplomatic efforts in the Middle East reduced immediate inflation concerns.
BOJ Takes Rates to a 31-Year HighThe Bank of Japan raised its key short-term interest rate by 25 basis points to 1.25% in September, pushing borrowing costs to their highest level since April 1995 and taking another step away from decades of ultra-loose monetary policy.
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