Markets Stabilize on Peace Hopes (06.22.2026)

Global markets began the week on a steadier note as reports of a potential 60-day U.S.–Iran peace roadmap eased concerns over energy supply disruptions and pushed oil prices lower. 

Gold and silver recovered part of their recent losses, while the dollar remained broadly supported by the Federal Reserve’s hawkish outlook. The euro and pound stayed under pressure after last week’s sharp declines, and the Japanese yen hovered near multi-decade lows as yield differentials continued to favor the US Dollar. Investors are now turning their attention to U.S. PCE inflation data for fresh clues on the Fed’s next move.

Euro Weakens Toward $1.145

The euro fluctuated around $1.145, staggering near its lowest valuation since mid March and wrapping up a 1% weekly drop due to heavy safe haven demand for the dollar. Investor sentiment soured following the sudden collapse of U.S.–Iran diplomatic talks in Switzerland, which reignited anxieties over the fragile peace framework. Adding to the euro's hurdles, a hawkish Federal Reserve supported the dollar, even as the European Central Bank maintained a restrictive posture to fight persistent inflation.

The first resistance is positioned at 1.1500 while the support starts from 1.1440.

Gold Rebounds Toward $4,200

Gold advanced toward $4,200 per ounce on Monday, recovering ground as sliding crude prices, triggered by news of a potential 60 day U.S.–Iran peace roadmap, sparked market shifts. Despite temporary frictions around the Strait of Hormuz, maritime traffic persisted and Gulf nations signaled output hikes, comforting global supply anxieties. Market participants now await crucial U.S. PCE inflation data while evaluating the Federal Reserve's hawkish interest rate stance.

First resistance is seen at $4,220, with initial support near $4,135.

Yen Sinks Near 1986 Lows

The Japanese yen dropped to approximately 161.5 against the dollar on Monday, falling near multi decade lows despite persistent intervention warnings from domestic officials. Even the Bank of Japan's recent hawkish shift, which lifted interest rates to 1%, failed to stem the decline. The currency remains heavily suppressed by active carry trade dynamics and an expansive yield divergence between Japan and the United States, sustaining the yen's bearish momentum.

Initial resistance stands at 161.90, while the first support is at 160.80.

Sterling Recovers Above 1.3200

The British pound rebounded above $1.32, clawing back intraday losses despite declining near a two-month trough and heading for a 1% weekly drop against the dollar. The GBP/USD navigates heightened UK political friction, strong domestic retail sales, and shifting global risk appetites following canceled U.S.–Iran negotiations. While the Bank of England held interest rates at 3.75%, both British and American policymakers signal potential hikes ahead.

From a technical view, resistance stands near 1.3260, with support around 1.3180.

Silver Climbs Toward $66

Silver advanced near $66 per ounce, retracing recent drops as plunging oil prices, fueled by a prospective 60-day U.S.–Iran peace framework, redirected capital flows. Despite brief logistical anxieties over the Strait of Hormuz, global energy supplies held steady. Traders now await crucial U.S. PCE inflation figures while navigating the Federal Reserve's hawkish bias, which sustains expectations for upcoming interest rate hikes.

From a technical view, resistance stands near $66.50, while support is located around $64.70.