Markets Wait for ECB and BoE Guidance (02.03.2026)

The US 10-year Treasury yield held near 4.27% as strong manufacturing data and Kevin Warsh’s hawkish Fed nomination supported growth confidence, while a partial government shutdown threatened to delay the upcoming jobs report.

Major currencies and metals are consolidating as investors look ahead to key central bank meetings. The euro is holding near recent highs before the ECB decision, while the yen remains under pressure amid dollar strength and domestic political uncertainty. Gold has rebounded after sharp losses triggered by a hawkish Fed leadership shift, and silver is stabilizing following an aggressive selloff. Sterling has eased slightly as markets await guidance from the Bank of England, keeping technical levels firmly in focus.

Euro Holds Firm Ahead of ECB Decision

The euro held near $1.1800 on Tuesday, remaining close to last week’s four-year high. Investors expect the ECB to maintain interest rates this Thursday as officials evaluate how a weaker dollar and cheap Chinese imports affect inflation. While the eurozone remains resilient, policymakers warn that further currency strength could eventually necessitate rate cuts to protect exports and manage price targets.

The first resistance is located at 1.1850, and the closest support is found at 1.1770.

Yen Retreats Near 155.5

The Japanese yen softened toward 155.5 per dollar on Tuesday, extending its recent decline. The currency faces pressure from strong U.S. data and the nomination of a hawkish Fed Chair, which has fueled dollar strength. In Japan, Prime Minister Sanae Takaichi noted that a weaker yen can help exports. This remark, along with election nerves and hopes for a government spending package, has lowered confidence in the currency.

Technically, resistance stands near 156.00, while support is firm at 154.70.

Gold Rebounds Above $4,770

Gold rose over 2% to trade above $4,770 on Tuesday as bargain hunters entered the market following two days of sharp declines. The metal had plunged nearly 5% on Monday, marking its worst session in a decade. This drop was sparked by the nomination of Kevin Warsh as Federal Reserve Chair, a move seen as hawkish. Despite this volatility, gold remains supported by strong central bank buying, fiscal concerns, and safe-haven demand.

Gold sees support near $4705, while resistance is around $4860.

Pound Slips Ahead of BoE Meeting

The British pound drifted toward $1.367 on Tuesday, retreating further from its January peak as traders prepare for Thursday’s Bank of England announcement. Markets widely expect rates to hold at 3.75%. Investors have lowered their expectations for future rate cuts due to steady economic growth. UK inflation also remains the highest among G7 nations. While a 17-month peak in manufacturing supports a careful policy approach, a strong U.S. dollar is keeping the pound from rising.

From a technical view, support stands near 1.3620, with resistance around 1.3720.

Silver Reclaims $83 Level

Silver recovered above $83 per ounce on Tuesday, reclaiming ground after a brutal two-session plunge that erased nearly 40% of its recent value. The metal hit record highs in January due to safe-haven demand and heavy buying from Chinese investors. This rally reversed sharply on January 30 after the nomination of Kevin Warsh as Fed Chair. The news sparked a rapid exit from speculative positions, though fresh dip-buying is now providing support.

From a technical view, resistance stands near $88.00 while support is located around $81.10.