Markets Keep Cautious in Thin Trade (02.17.2026)

Global markets opened cautiously in thin trading, with the euro holding near $1.185 after the ECB signaled comfort with its strength, sterling steady around $1.36 ahead of key UK data, and the yen firming toward 153 on BoJ rate-hike speculation. 

Precious metals weakened as gold slipped below $4,970 and silver fell over 2% amid subdued liquidity and fading speculative momentum, leaving markets focused on central bank signals and upcoming inflation data.

Euro Holds Near Four-Year High

The euro traded near $1.185, remaining close to its late-January four-year peak above $1.20. Market support stems from the European Central Bank’s apparent tolerance of recent currency strength. During the February meeting, President Christine Lagarde described the inflation outlook as being in a "good place," while advising against knee-jerk reactions to volatile data. Sentiment was further bolstered by news that Bank of France Governor François Villeroy de Galhau, a prominent dove, will resign in June to lead a youth foundation.

For EUR/USD, the nearest resistance stands at 1.1880, while the first support level is located at 1.1800.

Yen Gains on Hike Hopes

On Tuesday, the yen strengthened to approximately 153 per dollar, rebounding as speculation grows over an accelerated Bank of Japan rate hike. Former BOJ policymaker Saiji Adachi suggested that the central bank will likely possess enough evidence by April to support an increase in the benchmark interest rate. This commentary has renewed market focus on a potential policy shift, helping the currency recover from its earlier session losses.

Technically, resistance stands near 153.70, while support is firm at 152.50.

Gold Slips in Thin Trading

Gold dropped below $4,960 per ounce on Tuesday, marking its second consecutive daily decline. Trading activity remained quiet due to a lack of liquidity, as major Asian markets (including China) stayed closed for the Lunar New Year following a U.S. holiday on Monday. Despite the dip, lower than expected U.S. inflation data from last Friday continues to fuel expectations for potential Federal Reserve easing later this year.

Gold sees support near $4885, while resistance is around $5000.

Sterling Struggles Amid Weak Growth

The British pound remained near $1.36 as investors assessed disappointing UK economic data. Figures revealed the economy expanded by only 0.1% in the final quarter of 2025, missing expectations and slowing annual growth to 1.0%, its lowest level since mid 2024. Sharp declines in industrial production and construction underscored a fragile recovery, adding pressure to Prime Minister Keir Starmer's administration. These results have solidified expectations for Bank of England rate cuts following their recent dovish hold at 3.75%.

From a technical view, support stands near 1.3600, with resistance around 1.3670.

Silver Extends Downturn Below $76

Silver fell more than 2% on Tuesday, dropping below $76 as its three-week decline continued. Trading volumes remained thin due to ongoing Lunar New Year holidays across China and Hong Kong. Earlier this year, a speculative surge driven by Chinese investors pushed prices to record highs, leading authorities and banks to implement risk-control measures to stabilize the volatile market.

From a technical view, resistance stands near $77.50 while support is located around $73.80.