May

Global Tech Gains Push Benchmarks Higher Ahead of U.S. PCE

27/05/2026 - 07:26 UTC

The USDX ticked up 0.17% on Tuesday, fluctuating around the 99.00 level as investors sought fresh updates on the ongoing U.S.-Iran negotiations during the late European session. The Greenback traded with a slight upward bias as market participants parsed mixed diplomatic and macroeconomic signals ahead of the U.S. cash market open following an extended holiday weekend. Optimism for a definitive deal grew after reports surfaced that Qatar-mediated talks were resolving the final sticking point regarding the unfreezing of Iranian assets, complemented by remarks from U.S. Interior Secretary Doug Burgum that President Donald Trump would secure a successful agreement. However, the safe-haven asset maintained solid structural support as stubborn energy-driven inflation forces traders to entirely rule out interest rate cuts. Instead, the CME FedWatch tool indicates that the market is evenly split, with a 43.5% probability that the Federal Reserve will hold interest rates steady all year and the remainder leaning toward at least one additional rate hike before year-end.

Gold dropped -0.88% on Tuesday, languishing near the $4,500 psychological mark as persistent geopolitical friction reinforced the appeal of the U.S. Dollar over the non-yielding bullion. Precious metal bulls remained firmly on the sidelines as investor sentiment soured over a volley of hostile rhetoric in the Middle East. Following defensive U.S. military strikes on Iranian missile launch sites, Iran’s Foreign Ministry condemned the action as a ceasefire violation, while Islamic Revolutionary Guard Corps (IRGC) officials asserted a definite right to retaliate. Furthermore, newly issued warnings from Iranian Supreme Leader Mojtaba Khamenei stating that regional nations would no longer serve as shields for American military bases injected a fresh wave of risk aversion into the market. This hawkish backdrop, which has driven global central banks like the RBA, ECB, BoJ, and RBNZ toward tighter monetary policy to combat inflation, continues to systematically cap any meaningful upside for gold ahead of Thursday's high-stakes U.S. PCE and preliminary GDP data.

WTI Oil advanced 2.63% on Tuesday, turning positive to trade near $90.75 per barrel during European hours as sudden military escalations effectively neutralized earlier peace progress. Crude benchmarks had initially drifted lower on news that a 60-day ceasefire extension and the subsequent reopening of the critical Strait of Hormuz waterway were advancing under President Trump's direction. However, this supply-side optimism rapidly dissolved after tactical strikes on Iranian naval mine units and coastal sites triggered a sharp rhetorical counter-offensive from Tehran, reminding energy markets of the highly fragile nature of the current maritime corridor. Energy traders are now shifting their focus toward the upcoming American Petroleum Institute (API) inventory report for tangible clues regarding physical crude demand.

Asian stock markets finished mixed on Wednesday, as Japanese and South Korean benchmarks scaled fresh record highs tracking Wall Street's technology-driven rally, though lingering uncertainty over a potential U.S.-Iran peace agreement capped broader investor sentiment.

The record-setting momentum was sparked overnight after the S&P 500 and Nasdaq Composite closed at all-time highs, allowing U.S. stock index futures to trade marginally higher during Asian hours. In Tokyo, the Nikkei 225 climbed to a historic peak, while the broader TOPIX finished flat. Simultaneously, South Korea's benchmark vaulted to a record high, supercharged by an unrelenting, AI-fueled rally in local semiconductor heavyweights.

Corporate hardware leaders dominated the session, drawing significant confidence from the U.S. trading session where Micron Technology surged 19.24% following a bullish brokerage upgrade. This wave of global enthusiasm carried into Seoul, where SK Hynix shares skyrocketed 8.56%, driving its massive valuation higher to join an elite global tier alongside memory peers. Domestic rival Samsung Electronics also achieved a new record peak, advancing 2.34% after unionized workers approved a contentious wage and bonus agreement to avert a potentially disruptive strike. Conversely, despite the structural AI tailwinds, Nvidia experienced a minor cooling period during its latest session, with shares dipping -0.25% on profit-taking.

Market attention is shifting to Thursday's major U.S. data, headlined by the Core PCE Price Index—projected to remain stable at 0.3% month-over-year—and the Preliminary GDP estimate, which is anticipated to climb to 2.1%. These critical releases, paired with an upcoming address from Bank of England Governor Andrew Bailey and key software earnings from Salesforce, Dell Technologies, and Zscaler, will serve as the next major drivers for global monetary policy and corporate spending projections.

EUR/USD

The euro strengthened against the US dollar during Wednesday’s Asian trading session, with EUR/USD climbing toward 1.1640 after modest losses in the previous session. The currency pair was supported by growing expectations that the European Central Bank (ECB) could maintain a more aggressive policy stance in response to persistent inflation pressures.

ECB policymaker Francois Villeroy de Galhau reinforced the hawkish outlook on Tuesday, stating that the central bank would take all necessary measures to ensure inflation returns to target levels.

Additional support for the euro came from recent remarks by ECB Executive Board member Isabel Schnabel, who has reportedly backed the case for a potential interest rate increase in June. Schnabel noted that the eurozone has largely moved beyond earlier energy-related risks, while warning that ongoing geopolitical tensions in the Middle East could continue fueling inflation through broader second-round effects. She stressed that preserving the ECB’s credibility may require timely policy action despite concerns over slower economic growth.

Meanwhile, the US dollar weakened as demand for traditional safe-haven assets eased, improving overall market sentiment. Investors were encouraged by renewed optimism that the United States and Iran could still reach an agreement despite heightened tensions in the Middle East.

Geopolitical concerns intensified after Iran’s foreign ministry condemned recent US airstrikes in the southern Hormozgan province, calling them a violation of a fragile seven-week ceasefire. Iranian media reported explosions in the region early Tuesday, while Supreme Leader Mojtaba Khamenei warned that Gulf states would no longer provide protection for US military bases in the region.

Gold

Gold prices remained under pressure during Wednesday’s Asian trading session, with XAU/USD trading near the key $4,500 level as investors continued to favor the US dollar amid ongoing geopolitical tensions and expectations of tighter monetary policy from major central banks.

The safe-haven appeal of the US dollar has been reinforced by escalating tensions between the United States and Iran, limiting upside momentum for gold. In addition, persistent inflation concerns have strengthened market expectations that central banks — particularly the US Federal Reserve — may maintain a hawkish stance for longer, reducing demand for non-yielding assets such as bullion.

Geopolitical risks intensified after US forces carried out defensive strikes in southern Iran on Monday, targeting missile facilities and vessels allegedly attempting to deploy naval mines. Iran’s Foreign Ministry condemned the attacks as a breach of the ceasefire agreement that has been in effect since early April. The Islamic Revolutionary Guard Corps (IRGC) also warned that Tehran reserves the right to respond to any violations, while Supreme Leader Mojtaba Khamenei stated that neighboring Gulf nations would no longer serve as protective zones for US military bases.

The developments have sustained risk premiums across global markets and supported the dollar’s status as a preferred reserve currency, placing additional pressure on gold prices.

Looking ahead, traders are expected to focus on upcoming US economic data, particularly Thursday’s release of the Personal Consumption Expenditures (PCE) Price Index and the second estimate of US GDP growth.

WTI Oil

Oil prices declined during Wednesday’s Asian trading session as ongoing diplomatic efforts between the United States and Iran helped ease immediate supply concerns, despite renewed military tensions earlier this week.

Market sentiment improved after reports indicated that indirect negotiations between Washington and Tehran were continuing despite recent exchanges of fire. According to regional media reports, discussions aimed at de-escalating the conflict and reopening the Strait of Hormuz remain active, although a comprehensive peace agreement still appears uncertain.

US officials signaled on Tuesday that a potential framework agreement with Iran could be reached within days. The proposed deal is expected to include an extension of the current ceasefire arrangement and measures to restore shipping access through the Strait of Hormuz, a critical global energy transit route.

Tensions escalated earlier this week after the US military carried out strikes against missile launch sites and vessels allegedly involved in mine-laying operations in southern Iran. Washington has described the military operations as defensive in nature, maintaining that the ceasefire agreement with Iran technically remains in effect.

While reports that several vessels successfully passed through the channel this week have raised hopes of a gradual reopening, shipping activity through Hormuz remains significantly below normal pre-conflict levels.

Markets are also watching ongoing discussions surrounding Iran’s nuclear program, as any broader diplomatic agreement could influence both sanctions policy and future global oil supply conditions.

US 500

US stock futures were largely unchanged late Tuesday after a technology-driven rally pushed the US 500 and US Tech 100 to fresh record highs, while renewed US military action in the Middle East tempered investor optimism.

Technology shares led the market higher, with chipmakers driving much of the momentum. Memory-chip producer Micron Technology surged following a bullish analyst upgrade, helping lift the Philadelphia Semiconductor Index to a record level. The rally also pushed Micron’s market capitalization above the $1 trillion mark for the first time.

Despite the strong performance in equities, investor sentiment remained cautious amid escalating geopolitical tensions. Fresh US military strikes targeting Iranian vessels near the Strait of Hormuz raised concerns that ongoing diplomatic efforts between Washington and Tehran could deteriorate.

Iran condemned the strikes as a violation of the current ceasefire arrangement, while US officials described the military operations as defensive measures.

Regional tensions were further amplified after reports indicated that Israel carried out more than 120 airstrikes in Lebanon on Tuesday. Tehran has reportedly linked any broader regional agreement to an end to Israeli military operations in Lebanon.

Market attention is now turning toward key US economic data due later this week, including the Personal Consumption Expenditures (PCE) Price Index — the Federal Reserve’s preferred inflation measure — for further insight into the outlook for interest rates.

Despite geopolitical uncertainty, analysts noted that continued enthusiasm surrounding artificial intelligence and strong technology earnings remained a key driver supporting US equities.

Global Tech Gains Push Benchmarks Higher Ahead of U.S. PCE

EUR/USD

Gold

WTI Oil

US 500

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