Heightened political tension and threats to central bank autonomy are driving global markets. The dollar weakened following legal pressure on Fed Chair Powell, allowing the euro to rebound and sterling to hold near multi-month highs.
The yen hit one-year lows due to Japanese political instability. While gold and silver are consolidating after record peaks, fragile sentiment remains. Ongoing unrest in Iran and broader geopolitical fears continue to sustain strong safe-haven demand.
| Time | Cur. | Event | Forecast | Previous |
| 13:30 | USD | CPI (MoM) (Dec) | 0.3% | 0.3% |
| 13:30 | USD | CPI (YoY) (Dec) | 2.7% | 2.7% |
| 13:30 | USD | Core CPI (MoM) (Dec) | 0.3% | 0.2% |
| 15:00 | USD | New Home Sales (Oct) | 715K | 800K |
The euro rose toward $1.17, recovering from a one-month low as the dollar retreated. Sentiment shifted after Fed Chair Jerome Powell revealed the Justice Department subpoenaed the Fed regarding headquarters costs. Powell labeled the probe a pretext for Donald Trump to pressure the central bank into cutting interest rates, sparking concerns over the Fed’s future independence.
Technically, 1.1620 is the key support, while resistance is seen at 1.1710.
| R1: 1.1710 | S1: 1.1620 |
| R2: 1.1840 | S2: 1.1590 |
| R3: 1.1890 | S3: 1.1520 |
The Japanese yen dropped past 158 per dollar on Tuesday, reaching its weakest level in a year. This decline follows growing speculation that Prime Minister Sanae Takaichi may dissolve parliament for a snap election as early as next month. Investors anticipate that a victory would allow Takaichi to further her agenda of aggressive, expansionary fiscal policies.
Technically, resistance stands near 158.90, while support is firm at 157.50.
| R1: 158.90 | S1: 157.50 |
| R2: 159.40 | S2: 156.80 |
| R3: 160.00 | S3: 154.70 |
Gold prices eased below $4,580 on Tuesday. This correction followed Monday’s record high of $4,600 as investors balanced a technical pullback with intensifying global risks. Sentiment remains volatile due to a criminal investigation into Fed Chair Jerome Powell, which he claims is a political attempt to force interest rate cuts. Additionally, President Trump has imposed a 25% tariff on countries trading with Iran, alongside renewed military threats. These factors continue to drive safe-haven demand despite the slight price dip.
Gold sees support near $4540, while resistance is around $4620.
| R1: 4620 | S1: 4540 |
| R2: 4650 | S2: 4490 |
| R3: 4710 | S3: 4395 |
The British pound surged toward $1.35, approaching a recent three-month peak. This move comes as investors move away from the dollar following news that the Justice Department subpoenaed Fed Chair Jerome Powell over building costs. Powell condemned the probe as a political tactic by President Trump to force interest rate cuts, sparking widespread fears over the central bank's independence.
From a technical view, support stands near 1.3420, with resistance around 1.3520.
| R1: 1.3520 | S1: 1.3420 |
| R2: 1.3550 | S2: 1.3340 |
| R3: 1.3620 | S3: 1.3290 |
Silver prices held steady near $85 on Tuesday, consolidating after Monday’s record surge. Market sentiment remains cautious as investors digest a criminal investigation into Fed Chair Jerome Powell and ongoing, deadly unrest in Iran. These risks, coupled with speculation about potential U.S. intervention, continue to support silver's appeal as a vital safe-haven asset in a volatile landscape.
From a technical view, resistance stands near $86.50 while support is located around $83.20.
| R1: 86.50 | S1: 83.20 |
| R2: 87.70 | S2: 79.90 |
| R3: 89.90 | S3: 77.00 |
China’s Uneven Economic ResilienceChina’s economy began the year with a stronger performance than anticipated, primarily fueled by a strong export sector that helped mitigate stagnant domestic consumption. While headline growth suggests a degree of stability, the recovery's internal structure is notably unbalanced. Also, intensifying geopolitical tensions, specifically the energy disruptions tied to the Iran conflict, threaten to dampen the global outlook and undermine China’s economic momentum.
Detail Optimism Supports Markets (04.16.2026)Markets remained supported as optimism around a potential US–Iran agreement kept risk sentiment elevated.
Markets Balance Between Relief and RiskGlobal markets have begun pricing in a more moderate geopolitical outlook, yet the underlying situation remains unsettled. Diplomatic overtures between the United States and Iran have shown a sense of guarded relief following weeks of heightened anxiety regarding energy flows and critical shipping lanes. Interestingly, the failure of disruptions in the Strait of Hormuz to ignite a total energy crisis has challenged traditional market expectations.
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