Markets Hold Defensive Tone (06.09.2026)

Markets remained cautious on Tuesday as investors balanced easing tensions between Iran and Israel against persistent inflation concerns. 

The euro stayed near two-month lows while expectations for ECB tightening continued to build amid rising energy costs. Precious metals stabilized after recent losses, though a stronger dollar and higher Treasury yields kept pressure on gold and silver. Meanwhile, the yen remained above the key 160 level and sterling hovered near its weakest levels since May as traders monitored central bank expectations and upcoming U.S. inflation data.

EUR/USD Holds Above $1.15

The euro stayed just above $1.15, close to its lowest level since early April, as rising tensions between Iran and Israel pushed energy prices higher and heightened inflation worries while also dampening growth prospects. These mounting inflationary pressures have markets increasingly pricing in a near term ECB interest rate hike, the accompanying threat of a Eurozone economic contraction continues to damp investor confidence.

For EUR/USD, the initial resistance is seen at 1.1570, while the closest support is positioned at 1.1510.

Gold Holds Near Support

Gold stabilized above $4,300 on Tuesday as Iran and Israel suspended hostilities, calming fears of an expanded conflict and cooling energy-driven inflation anxieties. Even so, the precious metal stayed near late-March lows. A firmer U.S. dollar and climbing Treasury yields continue to pressure the non-yielding asset, driven by strong payroll numbers that increased year-end Federal Reserve rate hike expectations. Market participants are now turning their attention to upcoming U.S. inflation data.

First resistance is seen at $4370, with initial support near $4280.

Yen Hovers Past 160

The Japanese yen weakened beyond 160 per dollar, a threshold frequently triggering official currency intervention, under persistent pressure from a strong U.S. dollar backed by solid employment numbers. The USD demand softened slightly after Israel and Iran agreed to suspend hostilities, which cooled safe haven buying. Also, Japan's foreign reserves dropped sharply following previous market stabilization efforts, while sticky domestic inflation continues to lift expectations for an upcoming Bank of Japan interest rate hike.

Initial resistance stands at 160.90, while the first support is located at 159.40.

Pound Near May Lows

The British pound stabilized around $1.33, matching its lowest point since mid-May as intensifying Middle East hostilities raised fears of a protracted conflict. Brent crude jumped over 4% following Iran-Israel missile strikes, worsening inflation anxieties and clouding economic growth prospects. While market participants fully price in two Bank of England interest rate increases this year, some officials claim that current policy is already sufficiently restrictive given softening domestic labor conditions and slowing recruitment.

From a technical view, resistance stands near 1.3410, with support around 1.3300.

Silver Holds Multi-Month Lows

Silver stabilized above $67 on Tuesday after Israel and Iran agreed to suspend hostilities, alleviating fears of an expanded conflict and cooling energy-driven inflation anxieties. President Trump further indicated progress toward a comprehensive ceasefire. Nonetheless, the metal hovered near late-March lows as a firm U.S. dollar and climbing Treasury yields, fueled by solid payroll figures, maintained pressure. Investors now price in roughly a 70% probability of a December Federal Reserve rate hike, shifting focus to impending U.S. inflation reports.

From a technical view, resistance stands near $69.50, while support is located around $65.40.