Markets Lean Cautiously Risk-On (05.11.2026)

Global markets leaned toward a cautiously optimistic tone as hopes for progress in U.S.–Iran ceasefire negotiations supported risk appetite and pressured the dollar. 

The euro climbed to multi-week highs on expectations of further ECB tightening, while sterling remained firm near recent peaks amid persistent inflation concerns and hawkish Bank of England expectations. Precious metals traded mixed, with gold slipping under pressure from strong U.S. economic data and renewed geopolitical uncertainty, while silver continued to consolidate near multi-year highs. Meanwhile, the Japanese yen remained trapped near 157 as intervention concerns and domestic tightening expectations struggled against broad dollar strength.

Euro Rises on Easing Geopolitical Risks

The euro rose past 1.175, reaching its best level in weeks as optimism regarding U.S.–Iran ceasefire talks lifted market sentiment. Support also came from expectations of further ECB interest rate hikes. While these factors pushed the currency higher, gains were limited by fresh trade friction after Donald Trump cautioned the European Union about potential tariff increases.

For EUR/USD, the initial resistance is seen at 1.1770, while the closest support is positioned at 1.1660.

Gold Falls Below 4,700

Gold dropped under $4,700 after Donald Trump rejected Iran’s proposal regarding the Strait of Hormuz. This renewed instability sparked fears of persistent inflation and prolonged high interest rates, weighing on non-yielding assets. Additionally, strong U.S. jobs data reinforced confidence in economic resilience, further dampening the metal's appeal as investors weighed geopolitical risks against a strong domestic outlook.

First resistance is seen at $4725, with initial support near $4645.

Yen Holds Steady Near 157

The Japanese yen remained around 157 per dollar, ending the week largely flat as Tokyo's warnings failed to spark a lasting rally. Despite official readiness to act, no new intervention was confirmed. While rising real wages in Japan support the case for further Bank of Japan policy tightening, the yen faces heavy pressure from a resilient U.S. dollar. Persistent geopolitical friction between Washington and Tehran also continues to weigh on the currency, offsetting domestic hawkish signals.

Initial resistance stands at 158.10, while the first support is located at 156.50.

Sterling Holds Near Highs

GBP/USD is trading around 1.3590, maintaining levels near multi-month peaks as the pound gains from a hawkish Bank of England stance and dollar softness. Ongoing inflation risks and energy cost pressures provide a solid foundation for rate hike expectations. Investors are now shifting focus toward upcoming U.S. inflation reports and UK GDP data, which will likely serve as the primary catalysts for the pair's next trend.

From a technical view, resistance stands near 1.3610, with support around 1.3520.

Silver Consolidates Near Multi-Year Peaks

Silver is trading around $80.24, consolidating near multi-year highs as investors balance safe-haven demand against a stronger dollar and easing inflation fears. Middle East volatility and U.S.–Iran uncertainty continue to drive fluctuations, while upcoming U.S. inflation data dictates market sentiment. Despite short-term overbought signals, the broader technical outlook remains bullish, supported by resilient industrial demand and ongoing supply constraints.

From a technical view, resistance stands near $82.90 while support is located around $77.70.