Weak USD Continues to Lift Markets (08.21.2026)

Global markets ended the week with broad U.S. dollar weakness after the Treasury announced plans to expand long-term debt buybacks, adding liquidity and pressuring yields. 

The euro reached a three-month high, while sterling climbed to its strongest level in six months. Gold held above $4,500 and silver extended its weekly advance amid currency and bond market volatility. Meanwhile, the yen remained near 159 as stronger Japanese inflation reinforced expectations for further Bank of Japan tightening.

Euro Hits Three-Month High

The euro rose to $1.168, reaching its highest point in three months as the US dollar faced broad selling pressure. The dollar weakened after the US Treasury announced plans to double its buyback limits for long-term notes and bonds next quarter, an expansion expected to inject substantial dollar liquidity through the Treasury General Account.

The first resistance is positioned at 1.1720 while the support starts from 1.1650.

Gold Holds Above $4,500

Gold traded above $4,500 per ounce on Friday, positioning the precious metal for its third consecutive weekly advance as investors sought safe-haven protection against currency and bond market volatility. Persistent inflation concerns fueled by climbing crude oil prices further supported demand. Bullion's upward momentum follows a 4% surge on Wednesday, triggered by US Treasury plans to double long-term debt buybacks, which dragged yields and the dollar sharply lower.

First resistance is seen at $4560, with initial support near $4490.

Yen Hovers Near 159

The Japanese yen hovered near 159 per dollar on Friday following earlier weekly volatility. Fresh economic data showed Japan’s inflation accelerating for a second consecutive month, supporting expectations for a near-term Bank of Japan interest rate hike. Financial markets are increasingly pricing in a potential September policy adjustment, while BOJ Governor Kazuo Ueda indicated that officials could accelerate the pace of monetary normalization.

First resistance is seen at 159.50, with initial support near 157.20.

Sterling Hits Six-Month High

The British pound climbed above $1.363, reaching its strongest level in six months as broad weakness in the US dollar supported major currencies. Sterling gained additional traction after the US Treasury unexpectedly announced plans to at least double its long-term bond buybacks, creating further downward pressure on the dolar across major currency pairs.

From a technical view, resistance stands near 1.3680, with support around 1.3590.

Silver Heads for Weekly Gain

Silver traded above $68 an ounce on Friday, positioning the metal for a third straight weekly gain. Volatility across currency and bond markets drove investors toward safe-haven assets, while advancing crude oil prices sustained broader inflationary concerns.

From a technical view, resistance stands near $69.50, while support is located around $67.20.