Dollar strength remained a key pressure across major currencies and precious metals as Federal Reserve officials reinforced expectations for further monetary tightening.
The euro fell toward 1.145 and sterling weakened near 1.336, with the pound also facing pressure from a widening UK budget deficit. Gold slipped below $4,350 and silver retreated under $67 despite a sixth consecutive decline in crude oil prices as diplomatic developments eased Middle East supply concerns. Meanwhile, the yen weakened toward 157.6, keeping the possibility of Japanese currency intervention in focus.
| Time | Cur. | Event | Forecast | Previous |
| All Day | JPY | Japan – Holiday | ||
| 13:45 | USD | S&P Global Manufacturing PMI (Sep) | 53.6 | 53.9 |
| 13:45 | USD | S&P Global Services PMI (Sep) | 55.8 | 56.5 |
| 14:30 | USD | Crude Oil Inventories | -0.700M | -0.640M |
The euro fell to $1.145, its lowest level since late July, as market participants evaluated Middle East geopolitical shifts while strong Federal Reserve interest rate expectations supported the dollar. Crude prices dropped following potential diplomatic signals regarding shipping lanes near Iran. ECB Chief Economist Philip Lane warned that high energy costs could prolong European inflation. Following a recent rate increase, ECB officials are laying the foundation for additional monetary tightening as regional inflation stays above target.
The first resistance is positioned at 1.1470 while the support starts from 1.1400.
| R1: 1.1470 | S1: 1.1450 |
| R2: 1.1500 | S2: 1.1380 |
| R3: 1.1550 | S3: 1.1350 |
Gold fell below $4,350 per ounce on Wednesday as hawkish comments from Federal Reserve officials overshadowed falling energy costs. Richmond Fed President Tom Barkin warned that inflation pressures could persist, while Boston Fed President Susan Collins defended recent rate increases. Meanwhile, crude prices dropped for a sixth consecutive session amid potential US-Iran diplomatic breakthroughs, easing immediate inflation concerns. Strong Asian demand provided an underlying floor, with Chinese gold imports through August surpassing total 2025 levels.
First resistance is seen at $4380, with initial support near $4300.
| R1: 4380 | S1: 4300 |
| R2: 4420 | S2: 4260 |
| R3: 4450 | S3: 4200 |
The Japanese yen dropped toward 157.6 per dollar on Wednesday, keeping traders alert for potential currency intervention over Japan's extended holiday. Market intervention fears intensified following reports of a Bank of Japan rate check last Friday. Strong dollar demand, driven by tight Federal Reserve policy expectations, placed additional weight on the currency. While BOJ Governor Kazuo Ueda reaffirmed plans to raise borrowing costs as economic conditions evolve, monetary policy remains supportive for now.
First resistance is seen at 158.40, with initial support near 156.80.
| R1: 158.40 | S1: 156.80 |
| R2: 160.00 | S2: 155.50 |
| R3: 161.50 | S3: 154.00 |
The British pound fell toward $1.336, approaching late-July lows as investors weighed geopolitical shifts and weak UK fiscal data. A strong US dollar added downward pressure on expectations of continued Federal Reserve rate hikes. Meanwhile, crude oil prices fell following potential progress on Middle East shipping routes. Domestically, the UK budget deficit widened to £18.3 billion in August, exceeding forecasts and drawing attention to upcoming government budget adjustments.
From a technical view, resistance stands near 1.3350, with support around 1.3300.
| R1: 1.3350 | S1: 1.3330 |
| R2: 1.3400 | S2: 1.3250 |
| R3: 1.3450 | S3: 1.3200 |
Silver fell below $67 per ounce on Wednesday, giving up recent gains as firm Federal Reserve comments overshadowed declining energy costs. Richmond Fed President Tom Barkin noted that inflation shocks could take time to dissipate, while Boston Fed President Susan Collins backed recent rate hikes. Meanwhile, crude prices declined for a sixth straight session following potential diplomatic progress with Iran, offering some relief regarding broader inflationary pressures.
From a technical view, resistance stands near $67.50, while support is located around $65,00.
| R1: 67.50 | S1: 65.00 |
| R2: 69.20 | S2: 63.90 |
| R3: 71.00 | S3: 62.00 |
Renewed expectations for further Federal Reserve tightening kept the dollar supported as policymakers continued to warn about persistent inflation risks.
Fed, BOJ Hikes Lift Dollar as Oil Falls (21 – 25 September)Global markets entered the week balancing tighter monetary policy against signs of easing Middle East energy risks. The Federal Reserve remains the main macro driver after raising rates to 3.75%–4.00%, its first hike since 2023, and signaling that another increase remains possible this year. The Dollar Index advanced to 100.4, while Treasury yields remained elevated. The Bank of Japan also tightened policy, raising rates to 1.25%, although dissent within the board suggested that future increases could come at a slower pace.
DetailThen Join Our Telegram Channel and Subscribe Our Trading Signals Newsletter for Free!
Join Us On Telegram!
