Tensions Keep Markets Defensive (03.27.2026)

Markets remained cautious as escalating U.S.–Iran tensions drove demand for safer assets and supported the U.S. dollar. 

The euro stayed under pressure near $1.1540 despite rising expectations for further ECB rate hikes, while the Japanese yen hovered close to the critical 160 level, raising intervention concerns. Sterling also weakened amid falling consumer confidence and heightened geopolitical risks. In contrast, precious metals found some support, with gold rebounding above $4,400 and silver recovering from recent losses as temporary relief measures eased immediate market stress. Overall sentiment remains fragile, shaped by ongoing conflict and persistent inflation concerns.

Euro Under Pressure Near $1.1540

The euro hovered around 1.1540 on Friday, remaining below the $1.16 mark as investors moved away from riskier assets due to escalating U.S.–Iran tensions. Markets now anticipate up to three ECB rate hikes this year following Christine Lagarde’s hawkish inflation stance, even as fading German consumer confidence signals deepening economic anxiety.

For EUR/USD, the initial resistance is seen at 1.1580, while the closest support is positioned at 1.1500.

Yen Hovers Near Critical 160 Level

The Japanese yen remained around 159.5 per dollar on Friday, flirting with the psychological 160 threshold that previously sparked intervention. Politician Satsuki Katayama warned that authorities are ready to take "bold actions" to support the currency as soaring energy costs strain the economy. Persistent Middle East tensions and doubts over a U.S.–Iran deal continue to weigh on the yen, which is now facing a sharp monthly decline.

Technically, resistance stands near 160.00, while support is firm at 158.80.

Gold Rebounds Past $4,400

Gold surged past $4,400 per ounce on Friday, recovering from a sharp previous-session decline. Markets found temporary relief after Donald Trump postponed potential strikes on Iranian energy facilities until April 6 and noted that Iran allowed tankers to navigate the Strait of Hormuz. However, Tehran rejected the latest U.S. proposal, issuing its own counter-conditions. Persistent conflict and high energy prices continue to fuel inflation fears, keeping global expectations for tighter monetary policy firmly in place.

Gold sees support near $4350, while resistance is around $4500.

Sterling Declines Toward $1.33

The British pound fell toward $1.33 as investors sought safety amid escalating US-Iran tensions. President Trump suggested Iran wants a deal but is “afraid to admit it,” while Iranian state media rejected talks, demanding unilateral guarantees and possible fees for ships in the Strait of Hormuz. UK consumer confidence dropped to record lows in March, fueling inflation worries. Markets now price in two to three Bank of England rate hikes, with a 70% probability of one next month and a second expected by July.

From a technical view, support stands near 1.3290, with resistance around 1.3410.

Silver Rebounds Above $68

Silver traded around $68 per ounce on Friday, recovering from a previous sharp selloff. Markets found temporary relief after Donald Trump extended the deadline for a potential deal with Iran. However, Iran rejected the U.S. 15-point plan, counter-proposing its own terms for waterway control. These ongoing tensions and high energy costs continue to fuel inflation fears and hawkish central bank expectations.

From a technical view, resistance stands near $67.50 while support is located around $70.70.