S&P 500 dips to 6-week low as EUR/GBP, silver price recover 

​​​Macro update

Wall Street extends sell-off: Rising Treasury yields, mounting debt concerns and higher crude prices kept investors on the sidelines, with the Dow falling 0.63%, the S&P 500 down 0.45% and the Nasdaq 0.78% lower as every sector except energy declined.

​Fed hike all but certain: Markets are pricing in a 93% chance of a 25-basis-point rate increase on Wednesday, which would be the first US hike in more than three years, following hotter inflation data and a near 25% surge in crude prices over the past two weeks.

​Treasury yields breach 5%: The benchmark 10-year yield climbed to its highest level since 2007 as expectations of higher rates pushed global bond yields higher, increasing pressure on heavily indebted borrowers, including companies with major AI investments.

​Asian shares steady: MSCI’s broadest index of Asia-Pacific shares excluding Japan rose 0.5%, ending a four-day losing streak as South Korean and Taiwanese stocks led gains, while the 10-year Treasury yield slipped back below 5%.

​Oil retreats after rally: Brent fell 0.6% to around $108 a barrel and WTI dropped to $104.73 as a larger-than-expected build in US crude inventories offset ongoing supply disruptions caused by attacks on Saudi energy infrastructure.

​Dollar holds near highs: The US dollar remained close to multi-week highs ahead of the Fed decision, reaching a one-week peak of ¥155.43 against the yen, while sterling traded at $1.3478 ahead of Thursday’s Bank of England meeting.

​S&P 500 remains under pressure

​The S&P 500 slid to a six-week low at 7,573 on Tuesday, near support found between the mid-June-to-mid-July highs at 7,581-to-7,578. If slipped through, the mid-May, 22 June and 22 July highs at 7,530-to-7,517 may be reached.

​Minor resistance above the June high and early September low at 7,611-to-7,621 may be spotted around the 20-to-24 August lows at 7,638-to-7,639.

​Short-term outlook: bearish while below the 11 September high at 7,677

​Medium-term outlook: neutral with a bullish bias while above the 9 June low at 7,238

​EUR/GBP range trades above support zone

EUR/GBP's slide from its two-month high at £0.8608, made slightly below the February-to-23 June lows at £0.8612-to-£0.8621, has so far taken it to this week's £0.8552 low which offers minor support.

​While this level holds, minor resistance at the 8 September low at £0.8571 is expected to be revisited. Further up lie the 5-to-20 August highs at £0.8582-to-£0.8585.

​Short-term outlook: bullish while above the 14-to-15 September lows at £0.8552

​Medium-term outlook: neutral with a bullish bias while trading above the 12 August low at £0.8532

​Silver price bounces back

​The price of silver - having this week dipped into its key $63.2765-to-$61.0065 support zone - is seen bouncing back with the 4 September low at $64.7445 acting as minor resistance. If overcome, the mid-August high at $66.8025 may be revisited.

​Short-term outlook: neutral with a bullish undertone while above the 14 September low at $62.3325

​​Medium-term outlook: bullish while above the 22 July high at $60.9365