S&P 500, silver price in recovery mode while EUR/GBP encounters resistance 

Macro update

Wall Street rebounds: US stocks broke a three-session losing streak overnight, with the Dow, S&P 500 and Nasdaq 100 gaining around half a percentage point, led by a 3.2% jump in Nvidia and a 15.8% surge in Dell after it raised its full-year forecasts.

Central banks remain in focus: Asian shares and bonds staged a relief rally as investors awaited Friday's US payrolls report and further central bank commentary, with markets now pricing a 61% chance of a September Federal Reserve rate hike, up from 37% a week ago.

Yen strengthens to a three-week high: The Japanese currency climbed 0.67% to ¥157.64 per dollar, its strongest level since August 10, after hawkish comments from BOJ board member Hajime Takata boosted expectations of faster rate increases.

Bond yields retreat from record highs: Japanese government bond yields fell sharply alongside a recovery in Treasuries, with the 30-year JGB yield dropping 8 basis points to 4.085% after strong demand at a debt auction, while the US 10-year yield eased to 4.776%.

Oil prices edge lower as tensions ease: Brent crude slipped around 0.5% to $95 a barrel and WTI fell to around $90.50 as tentative signs of de-escalation in the latest US-Iran flare-up offset supply concerns, with President Trump saying the campaign would not last "too long".

Gold rises on renewed safe-haven demand: Spot gold climbed over 1% to $4,435 an ounce, while silver gained 1.3% to $66.17 as investors sought protection from Middle East tensions and renewed concerns over the inflation outlook.

S&P 500 bounces off support

The S&P 500 seems to have found support at Tuesday's 7,611 low. For another up leg to be seen, however, the late August high at 7,771 would need to be exceeded.

Failure at Tuesday's 7,611 low would likely lead to a slide to the mid-June-to-mid-July highs at 7,581-to-7,578 taking shape.

Short-term outlook: bullish while above the 1 September low at 7,611

Medium-term outlook: bullish while above the 9 June low at 7,238

S&P500 daily candlestick chart

EUR/GBP nears key resistance zone

EUR/GBP has so far risen to a two-month high at £0.8603, exactly where the 24 June low was made. Slightly further up lies a key resistance area between the February-to-23 June lows at £0.8612-to-£0.8621. This is expected to thwart the upside over the days to come, were it to be reached.

Minor support sits between the 5-to-20 August highs at £0.8585-to-£0.8582.

Short-term outlook: bullish while above the 25 August low at £0.8547

Medium-term outlook: bullish while trading above the 12 August low at £0.8532

EUR/GBP daily candlestick chart

Silver price bounces back

The price of Silver - having been rejected by its $70.8656-to-$71.7920 resistance area - seems to have found support marginally above its 19 August low at $62.5645. While it and the 11 June low at $61.5050 hold, another up leg may be formed with the 200-day simple moving average (SMA) at $72.6635 being eyed.

First, though, the 12 August high at $66.8025 will need to be exceeded.

Short-term outlook: neutral with a bullish undertone while above the 19 August low at $62.5645

Medium-term outlook: bullish while above the 11 June low at $61.5050

Silver daily candlestick chart