Strong Dollar Extends Pressure Across Markets (06.26.2026)

Global markets ended the week under pressure as expectations of prolonged Federal Reserve tightening continued to strengthen the U.S. dollar. 

The euro fell to a one-year low, while the Japanese yen remained near multi-decade lows despite expectations of further Bank of Japan rate hikes. Gold and silver posted steep weekly losses as higher yields and a stronger dollar reduced demand for precious metals. Meanwhile, slowing economic activity in Europe and the UK reinforced concerns that restrictive monetary policy is weighing on growth.

Euro Declines to 12-Month Low

The euro slid to $1.138, reaching its weakest level since June 2025 as a strong dollar and expectations of prolonged Federal Reserve rate hikes weighed on the single currency. While the European Central Bank enacted a 25 basis point interest rate increase this month, President Christine Lagarde suggested aggressive tightening is unnecessary given Middle East geopolitical frictions. Market participants lowered their forecasts for future ECB interest rate hikes, although one final increase remains anticipated later this year.

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

Gold Suffers Steep Weekly Loss

Gold tumbled below $4,000 per ounce on Friday, heading toward a weekly drop of over 5% as investors stayed locked onto the Federal Reserve's restrictive monetary policy stance. Although cooling inflation metrics offered minor support, expectations for additional U.S. interest rate hikes remained elevated, keeping the non-yielding metal under intense pressure.

First resistance is seen at $4055, with initial support near $3960.

Yen Holds Near Multi-Decade Lows

The Japanese yen hovered around 161.7 per US dollar on Friday, remaining stuck near its weakest levels in decades as relentless dollar dominance overshadowed anticipated policy tightening by the Bank of Japan. Although accelerating domestic inflation continues to support the case for upcoming BOJ interest rate hikes, currency traders remain firmly fixed on a higher-for-longer U.S. interest rate outlook, maintaining heavy pressure on the yen and capping recovery attempts.

Initial resistance stands at 162.20, while the first support is at 161.00.

Sterling Slumps on Mixed Domestic Signals

The British pound slid under $1.32, hovering near a seven-month low as investors balanced cooling political anxiety against worsening UK economic performance data. While Keir Starmer’s exit minimized fears of a protracted Labour leadership battle with Andy Burnham leading the race, soft June PMI numbers highlighted contraction. Persistent inflation pressures continue to complicate Bank of England policymaking.

From a technical view, resistance stands near 1.3240, with support around 1.3150.

Silver Slides Below $57

Silver plunged beneath $57 per ounce on Friday, pacing toward a sharp weekly loss of roughly 14% as aggressive Federal Reserve interest rate projections eclipsed minor support from relaxing U.S.–Iran geopolitical tensions. While the metal staged a brief mid-week rebound after U.S. PCE inflation figures matched consensus, cooling immediate rate-hike anxieties and pulling Treasury yields lower, hawkish policy expectations ultimately resumed control of the market.

From a technical view, resistance stands near $57.25, while support is located around $55.50.