Rising Treasury Yields Pressure Markets (09.25.2026)

Euro Drops Near 1.1375

The euro drifted lower on Friday as investors braced for additional Federal Reserve interest rate increases alongside ongoing geopolitical friction in the Middle East. Early Asian trading saw EUR/USD slip toward 1.1375 as market pricing reflected a 67.5% chance of an October Fed rate hike. Tensions remained high following public statements from Iran's leadership demanding that the United States commit to ending the conflict.

The first resistance is positioned at 1.1400 while the support starts from 1.1350.

Gold is Heading for Weekly Loss

Gold traded near $4,270 per ounce on Friday, putting the precious metal on track for a weekly drop of over 2%. Higher Treasury yields and a rising US dollar continued to weigh on prices as investors braced for potential Federal Reserve rate hikes to manage inflation. US 10-year and 30-year yields surged to multi-decade highs on Thursday, while the dollar reached its highest point in nearly two months.

First resistance is seen at $4320, with initial support near $4240.

Yen Near Two-Week Lows

The Japanese yen hovered near 158.5 against the US dollar on Friday, remaining close to two-week lows and approaching the critical 160 threshold. Higher Treasury yields and a rising dollar continue to weigh on the currency alongside views that the Bank of Japan's recent rate hike lacked hawkish intensity. However, former BOJ board member Makoto Sakurai noted the central bank might hike rates quarterly, potentially hitting 2% by mid-next year to address persistent inflation.

First resistance is seen at 159.50, with initial support near 157.70.

Pound Hits Three-Month Low

The British pound extended its decline toward $1.32, marking its lowest point in three months as market participants weighed contrasting comments from Bank of England officials. A rising US dollar and elevated oil prices added further pressure to sterling. BoE Deputy Governor Clare Lombardelli signaled that persistent energy costs could justify rate increases, while MPC member Swati Dhingra offered a more dovish perspective, noting that inflation expectations have not yet become a major issue.

From a technical view, resistance stands near 1.3270, with support around 1.3170.

Silver Set for Weekly Drop

Silver hovered below $64 per ounce on Friday, headed for a weekly loss of roughly 4%. A stronger US dollar and surging Treasury yields, led by strong economic data and high energy costs, continue to weigh on prices. Yields on 10-year and 30-year US Treasuries hit multi-decade highs on Thursday, with markets pricing in a 67% chance of an October Federal Reserve rate hike. Meanwhile, oil prices pulled back following reports of potential US-Iran talks to ease regional shipping blockades.

From a technical view, resistance stands near $64.50, while support is located around $63,00.