Safe-Haven Demand Keeps Dollar Firm (10.05.2026)

Safe-haven demand and elevated Treasury yields supported the dollar as Middle East tensions kept investors cautious at the start of the week. 

The dollar index held near 102, supported by euro weakness.  The euro fell toward 1.1174 amid additional pressure from fiscal uncertainty in France, while sterling held above 1.32 despite broad dollar strength. Gold stabilized near $4,150 as weak US employment data reduced Fed rate hike expectations, although high yields limited its recovery. Meanwhile, the yen remained near 157.8 as traders balanced possible Bank of Japan tightening against persistent dollar strength.

Euro Weakens as Safe-Haven Demand Lifts Dollar

EUR/USD dropped 0.71% to 1.1174 early Monday as safe-haven demand lifts the US dollar. Elevated Treasury yields, Middle East conflict risks, and fiscal uncertainty in France weighed on the euro. Although softer September US jobs figures lowered Federal Reserve rate-hike odds, hawkish official rhetoric sustained dollar strength as markets turn to the US ISM Services PMI.

The first resistance is positioned at 1.1260 while the support starts from 1.1150.

Gold Stabilizes Near $4,150

Gold hovered around $4,150 an ounce on Monday, recovering from earlier losses after soft US labor market data dampened Federal Reserve rate-hike expectations. September non-farm payrolls increased by only 29K, while unemployment rose to 4.2% and wage growth slowed. Although multi-decade high Treasury yields capped upside momentum, escalating Yemen-related Middle East tensions provided safe-haven support.

First resistance is seen at $4180, with initial support near $4120.

Yen Trades in Narrow Range Near 157.8

The Japanese yen hovered near 157.8 per dollar on Monday, extending a two-week range-bound pattern as investors awaited key domestic data, including wage growth, household spending, and consumer sentiment. While the Bank of Japan's September summary signaled potential further tightening this year without explicit timing, broad dollar strength and high Treasury yields kept the currency subdued.

First resistance is seen at 158.50, with initial support near 155.80.

Sterling Weakens but Holds Above $1.32

Sterling weakened on Monday but held above $1.32 as broad US dollar firmness counteracted soft US labor data. Downside stayed contained as markets continue pricing roughly 30 basis points of Bank of England tightening by year-end amid energy-led inflation risks. Meanwhile, political support from Prime Minister Andy Burnham for closer UK-EU ties offered additional underlying sentiment.

From a technical view, resistance stands near 1.3340, with support around 1.3140.

Silver Rebounds Above $61

Silver climbed above $61 per ounce on Monday, recovering from earlier losses as weak US employment figures reduced Federal Reserve rate-hike prospects. September non-farm payrolls added only 29K jobs, while unemployment ticked up to 4.2% and wage growth moderated. Although elevated Treasury yields limited further upside, escalating Yemen-related Middle East conflicts sustained safe-haven demand.

From a technical view, resistance stands near $62.50, while support is located around $60.00.