Rising Yields Pressure Global Markets (09.02.2026)

Global markets remained under pressure as rising bond yields, elevated energy costs, and hawkish Fed expectations strengthened the outlook for higher interest rates. 

The 10-year Treasury yield climbed above 4.8% Wednesday, approaching its highest level since October 2023, as surging oil prices deepened inflation concerns and pushed September Fed hike expectations to around 70%. The euro slipped below 1.16 despite Eurozone inflation accelerating to 3.3%, while sterling fell below 1.35 amid dollar strength and UK fiscal concerns. Gold dropped toward $4,300 and silver fell below $64 as September Fed rate-hike expectations approached 70%. Meanwhile, the yen weakened beyond 160 as high energy costs and wide rate differentials continued to outweigh intervention concerns.

Euro Dips Under $1.16

The euro traded just below $1.16 as investors digested fresh Eurozone inflation data. Driven by Middle East conflict and rising energy costs, annual inflation rose to 3.3% in August, hitting its highest mark since late 2023. Markets now price the ECB deposit rate reaching 2.70% by December, with an 80% chance of a second rate increase, while the US dollar held steady.

The first resistance is positioned at 1.1630 while the support starts from 1.1550.

Gold Drops to $4,300

Gold fell to roughly $4,300 on Wednesday, marking its fourth consecutive daily loss and reaching a three-week low. Rising bond yields, high oil costs, and hawkish Fed comments lifted September rate-hike odds to nearly 70%. Markets are now focused on upcoming US employment data, while ongoing US-Iran tensions continue to support energy prices.

First resistance is seen at $4330, with initial support near $4260.

Yen Crosses 160 Mark

The Japanese yen weakened past 160 per dollar on Wednesday, dropping to a one-month low and giving back two-thirds of its recent intervention gains. High energy costs, fiscal pressures, and rate gaps keep the currency down. While US and Japanese officials agreed to coordinate on exchange stability, calls for decisive action have strengthened expectations for a Bank of Japan rate hike.

First resistance is seen at 160.80, with initial support near 159.50.

Sterling Drops Below $1.35

GBP/USD fell to around $1.3496, extending its losses past the 1.3500 threshold as hawkish comments from Fed Chair Warsh drove broad dollar demand. Rising UK public sector borrowing added pressure on sterling, while strong US manufacturing PMI data carried expectations for elevated Fed interest rates, steering capital away from European currencies.

From a technical view, resistance stands near 1.3590, with support around 1.3470.

Silver Falls Below $64 Amid Rising Yields

Silver fell below $64 on Wednesday, extending losses as rising bond yields and energy costs drove up Fed rate-hike expectations. Hawkish comments from Kevin Warsh lifted September hike odds near 70%. Markets are now focused on upcoming US employment reports, while escalating US-Iran conflict continued to push oil prices higher.

From a technical view, resistance stands near $64.40, while support is located around $62.50.