Global markets opened the week with the dollar under pressure after unexpectedly weak U.S. employment data reduced expectations for a September Federal Reserve rate hike.
Gold and silver held onto strong gains, while the euro and sterling remained supported near recent highs. Meanwhile, the yen resumed its decline as wide rate differentials and higher energy costs outweighed the impact of recent intervention. Investors now turn to upcoming U.S. inflation data for further clues on the Fed’s policy path.
| Time | Cur. | Event | Forecast | Previous |
| All Day | SGD | Singapore – National Day (Holiday) | ||
| All Day | ZAR | South Africa – Women’s Day (Holiday) |
EUR/USD maintains a cautiously bullish stance below key resistance following recent multi-week highs. Weak US employment and services figures dragged the dollar lower, whereas steady Eurozone economic growth provided support despite the European Central Bank's pause. Mid East geopolitical tensions contribute to market volatility, leaving traders focused on upcoming US inflation data.
The first resistance is positioned at 1.1570 while the support starts from 1.1500.
| R1: 1.1570 | S1: 1.1500 |
| R2: 1.1590 | S2: 1.1470 |
| R3: 1.1610 | S3: 1.1420 |
Gold maintained position above $4,300 on Monday, retaining last week's dramatic gains following an unexpected contraction in US payrolls. July employment dropped by 23,000, lowering September Fed rate hike expectations down to 44%. Metal prices remained resilient despite climbing oil valuations driven by Strait of Hormuz uncertainties and conflicting diplomatic statements regarding potential US-Iran negotiations.
First resistance is seen at $4350, with initial support near $4280.
| R1: 4350 | S1: 4280 |
| R2: 4400 | S2: 4200 |
| R3: 4490 | S3: 4150 |
The Japanese yen dropped past 158 per dollar on Monday, erasing gains from recent joint market interventions by Tokyo and Washington. Wide interest rate gaps, fiscal worries, and high energy costs continue to exert significant pressure on the currency. Japan's narrowing current account surplus reflects rising oil import bills offsetting tech exports, even as Bank of Japan officials warn of inflation and hint at prospective rate hikes.
Initial resistance stands at 158.60, while the first support is at 157,30.
| R1: 158.60 | S1: 157.30 |
| R2: 160.00 | S2: 155.80 |
| R3: 162.10 | S3: 153.50 |
GBP/USD trades sideways near 1.3485, consolidating beneath key resistance at 1.3500. Disappointing US employment data keeps the dollar under pressure, while a close Bank of England decision to hold rates offers underlying support for Sterling. Although August historically favors sellers, bullish moving averages and healthy technical indicators keep momentum intact ahead of Wednesday's US inflation data.
From a technical view, resistance stands near 1.3500, with support around 1.3400.
| R1: 1.3500 | S1: 1.3400 |
| R2: 1.3540 | S2: 1.3320 |
| R3: 1.3600 | S3: 1.3240 |
Silver traded around $64 per ounce on Monday, retaining last week's double-digit surge after an unexpected drop in US payrolls curbed Federal Reserve rate hike expectations. July employment shrank by 23,000, lowering September rate hike odds to 44%. Metal valuations remained resilient despite rising oil prices driven by Strait of Hormuz uncertainties and conflicting statements regarding potential US-Iran diplomatic progress.
From a technical view, resistance stands near $65.00, while support is located around $62.50.
| R1: 65.00 | S1: 62.50 |
| R2: 65.80 | S2: 61.20 |
| R3: 66.40 | S3: 60.00 |
Fed Turns Hawkish (31 August – 4 September)Global markets entered the week with renewed focus on Federal Reserve tightening after Chair Kevin Warsh used his Jackson Hole address to push back against expectations that US inflation pressures were fading. The Dollar Index held near 99.6 after Friday’s sharp advance, while Treasury yields moved higher and precious metals retreated. Markets raised the probability of a September Fed rate hike to 57% from 40% a week earlier as Warsh reiterated the Fed’s commitment to returning inflation to its 2% target.
Detail
Hawkish Fed Lifts Dollar, Pressures Markets (08.31.2026)Global markets came under pressure after Fed Chair Kevin Warsh’s hawkish remarks strengthened expectations for a September rate hike.
Global markets traded cautiously ahead of Fed Chair Kevin Warsh’s Jackson Hole speech as investors assessed persistent U.S. inflation and shifting interest rate expectations.
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