Rate Hike Fears Grow (06.24.2026)

Global markets remained under pressure as growing expectations of additional Federal Reserve rate hikes supported the U.S. dollar and weighed on major currencies and precious metals. 

The euro fell to its weakest level in over a year, while the yen hovered near multi-decade lows despite continued intervention warnings from Japanese officials. Gold and silver extended their declines as investors adjusted to a higher-for-longer interest rate outlook. Meanwhile, softer economic data from Europe and the UK reinforced concerns about slowing growth, adding to the cautious market mood ahead of key U.S. inflation data.

Euro Weakens as Fed Tightens Bets

The euro slid to $1.136, hitting its lowest mark since June 2025 as a strong USD capitalized on expectations of further Federal Reserve rate hikes. While the European Central Bank delivered a 25 basis point increase, President Christine Lagarde tempered expectations by suggesting that cooling inflation curbs the need for aggressive tightening. Adding to regional pressure, downbeat German and Eurozone PMI data intensified fears of economic contraction and stalling growth.

The first resistance is positioned at 1.1400 while the support starts from 1.1320.

Gold Hits Seven-Month Lows

Gold fell below $4,100 per ounce, touching seven-month lows as expectations of tighter Federal Reserve monetary policy overshadowed relief from cooling U.S.–Iran frictions. While the Fed kept interest rates unchanged, policymakers signaled readiness for upcoming hikes, with Chair Kevin Warsh reinforcing a strict focus on price stability. Easing Middle East tensions mitigated broader inflation fears, while a sharp technology sector equity selloff prompted additional gold liquidations to cover widespread portfolio losses.

First resistance is seen at $4,115, with initial support near $4,040.

Yen Plummets to Multi-Decade Low

The Japanese yen hovered around 161.5 per dollar, languishing near levels unseen since 1986 as verbal warnings from Tokyo failed to spark a recovery. Finance Minister Satsuki Katayama stressed joint coordination with Washington on exchange rate stability, though market participants remain doubtful of actual currency intervention. A dominant dollar and wide yield differentials continue to depress the yen, even as the Bank of Japan projects slow, steady interest rate hikes.

Initial resistance stands at 162.00, while the first support is at 161.00.

Sterling Edges Lower Against Dollar

The British pound weakened against a firmer US dollar but remained comfortably above $1.32. Investors are actively weighing a drop in domestic political uncertainty against disappointing UK economic data. Sterling surrendered a portion of its recent gains as the dollar recovered amid cooling global market sentiment.

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

Silver is Under Pressure Near $63

Silver values fell toward $63 per ounce on Tuesday, extending a recent downward trend as aggressive Federal Reserve interest rate projections eclipsed the positive sentiment from U.S.–Iran diplomatic talks. Forecasts from Deutsche Bank and Bank of America were updated to include a potential policy tightening in September. Market participants are holding position ahead of vital PCE inflation data for clearer policy direction, while expanding Iranian crude exports signal rising global supply.

From a technical view, resistance stands near $64.50, while support is located around $60.00.