Daily Market Analysis By zForex

[zForex]

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.

US Treasury plans to increase purchases of longer-dated government bonds pushed yields lower and added pressure on the dollar. Inflation concerns, higher energy prices, and geopolitical risks continue to drive volatility across global markets.

The US-Iran conflict remains a major source of uncertainty, keeping risk sentiment fragile and energy-market concerns elevated.

Economic Calendar​

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.

Brent Crude Oil​

Brent traded above $93, heading for a second consecutive weekly gain with prices up more than 5% this week.

US-Iran tensions continued to support oil as both sides remained locked in a dispute over the Strait of Hormuz.

Resistance is seen at 92.50, while the nearest support stands at 90.00.

Chinese Yuan (USD/CNH)​

The offshore yuan strengthened to around 6.7239 per dollar, extending overnight gains to its strongest level since February 2023.

Persistent dollar weakness also supported currencies across Asia.

Resistance stands at 6.7300 while the nearest support is located at 6.7120.

Nasdaq 100​

The US 100 Tech Index traded at 29,198, down 213 points or 0.72% from the previous session. The index has lost 0.69% over the past four weeks but remains 24.26% higher year-on-year.

It is forecast at 29,400 by quarter-end and 27,544 in one year.

Resistance stands at 29,750, while the nearest support is located at 29,100.

Bitcoin (BTC/USD)​

Bitcoin climbed to $74,736, gaining 1,741 points or 2.39% from the previous session.

It has advanced 13.06% over the past four weeks, although it is still 36.05% lower year-on-year. Bitcoin is forecast at $63,993 by quarter-end and $70,937 over the next 12 months.

First resistance is seen at 76,000, with initial support near 70.700.

 

[zForex]

Gold Heads for a Third Weekly Gain​

Gold climbed to around $4,590/oz, gaining roughly 5% this week and 13% this month, putting it on course for a third straight weekly advance.

The rally accelerated after the US Treasury unexpectedly increased long-term debt buybacks, weakening the dollar and initially pulling Treasury yields lower. Concerns over rising US debt, dollar depreciation, and fiscal policy credibility have added to gold demand, even as long-term yields remain high.

Gold-backed ETFs also added around 18 tons in a single day, the largest increase since September 2025.

However, rising oil prices could keep inflation high and strengthen the case for higher interest rates, creating a potential obstacle for gold.

 

[zForex]

Hawkish Fed Lifts Dollar, Pressures Markets (08.31.2026)​

US stock futures edged lower on Monday as investors reacted to hawkish comments from Federal Reserve Chair Kevin Warsh and renewed tensions around the Strait of Hormuz. Oil prices jumped after US forces struck Iranian rocket launchers that were reportedly preparing to mine the key shipping route.

Warsh’s comments strengthened expectations for further monetary tightening. Markets raised the probability of a September Fed rate hike to 57% from around 40% last week after he warned that inflation was not slowing meaningfully and reiterated the Fed’s commitment to its 2% target.

U.S. 10-year Treasury yield held near 4.7%, extending its three-session advance. An upward revision to University of Michigan consumer sentiment also supported yields.

Japan’s 10-year government bond yield climbed toward 2.94%, approaching its highest level in around three decades as it followed the rise in US yields.

The dollar index traded near 99.6, maintaining Friday’s strong gains as higher rate expectations and geopolitical uncertainty supported demand for the US currency.

Despite Monday’s cautious tone, US equities posted solid August performances. The Dow gained 2.05%, putting it on course for a fifth consecutive monthly advance, while the S&P 500 and Nasdaq rose 2.96% and 4.05%, respectively.

Higher oil prices added to inflation concerns, while yen weakness reinforced expectations for a Bank of Japan rate hike in September. BOJ Deputy Governor Ryozo Himino has also emphasized the need to remain alert to inflation risks.

Investors are now focused on Friday’s August employment report for further signals on the Fed outlook. Markets will also monitor earnings from Broadcom, Dell, and Snowflake.

Economic Calendar​

Euro Drops to $1.16​

The euro fell toward $1.16, touching its lowest level since August 19 as a stronger US dollar was supported by hawkish remarks from Fed Chair Kevin Warsh, who stressed that inflation remains problematic.

Meanwhile, surprising French and Spanish inflation figures strengthened European Central Bank tightening bets, with markets now pricing the deposit rate to reach 2.80% by March and assigning a 60% probability of reaching 3%.

The first resistance is positioned at 1.1630 while the support starts from 1.1570.

Gold Falls Below $4,450​

Gold fell below $4,450 per ounce on Monday, building on Friday's steep decline as hawkish signals from Fed Chair Kevin Warsh pushed September rate-hike odds up to 57%. Warsh stressed that inflation has not slowed meaningfully, confirming commitment to the 2% target.

Additionally, rising oil prices following US strikes on Iranian Hormuz mine-layers pressured gold, though the metal still maintains an August gain above 10%.

First resistance is seen at $4450, with initial support near $4400.

Yen Weakens Past 160​

The Japanese yen slipped past 160 per dollar on Monday, touching near one-month lows as hawkish comments from Fed Chair Kevin Warsh lifted September rate-hike expectations to 57%.

Despite erased gains from July's joint intervention, market expectations for a Bank of Japan hike are growing. Wide rate differentials, ongoing fiscal worries, and high oil prices continue pressuring the currency.

First resistance is seen at 160.00, with initial support near 159.00.

Sterling Drops Toward $1.35​

The British pound fell toward $1.35, hitting its lowest level since August 19. Hawkish comments from Fed Chair Kevin Warsh supported the dollar by noting inflation has not meaningfully slowed.

Declining Brent crude prices eased UK inflation concerns and pushed Bank of England rate hike expectations into 2027, with markets currently pricing 24 basis points of tightening by December.

From a technical view, resistance stands near 1.3590, with support around 1.3500.

Silver Retreats Around $66.50​

Silver traded near $66.50 per ounce on Monday following a 4% drop on Friday, pressured by hawkish signals from Fed Chair Kevin Warsh that raised September rate-hike odds to 57%. Warsh warned inflation remains sticky, reinforcing commitment to the 2% target.

Rising oil prices after US strikes on Iranian targets also weighed on silver, though the metal stays set for a 15% monthly gain in August.

From a technical view, resistance stands near $67.40, while support is located around $66.00.

Brent Crude Oil​

Brent crude rose past $90 per barrel on Monday following US military strikes on Iranian rocket launchers preparing to deploy mines in the Strait of Hormuz. Marking the first such assault since late July, American forces reaffirmed their commitment to protecting trade corridors.

Despite Washington favoring sanctions over direct strikes recently, Iran noted diplomatic avenues remain open, with 6-8 million barrels still transiting daily.

Resistance is seen at 90.50, while the nearest support stands at 87.40.

Nasdaq 100​

The Nasdaq 100 consolidated below 30,000, pulling back toward 29,400 as hawkish comments from Fed Chair Kevin Warsh and elevated inflation data raised rate-hike expectations. Strong Nvidia earnings supported market sentiment, yet high index concentration leaves tech vulnerable.

Meanwhile, rising bond yields and persistent geopolitical risks keep upside gains capped.

Resistance stands at 29,800, while the nearest support is located at 29,300.

Chinese Yuan (USD/CNH)​

USDCNY trades near 6.7268, extending a bearish trend as the yuan hovers near its strongest levels in three years. Strong export-driven inflows and corporate FX conversions continue pressuring the pair lower.

The PBoC's counter-cyclical bias signals comfort with orderly yuan appreciation, while global de-dollarization flows add structural pressure on the dollar.

Resistance stands at 6.7300 while the nearest support is located at 6.7120.

Bitcoin (BTC/USD)​

Bitcoin trades near $77,750, with market cap around $1.56 trillion. The recovery follows strong short-squeeze liquidations and institutional spot ETF inflows.

Sentiment stays cautiously optimistic as traders watch whether Bitcoin can hold a firm breakthrough above the key $80,000 psychological threshold.

First resistance is seen at 81,400, with initial support near 78.000.