Daily Market Analysis (06.25.2026) | zForex.com

Markets Are at Multi-Month Extremes (06.25.2026)

China's central bank announced overnight reverse repo operations to strengthen short-term liquidity management. While the move modernizes the PBOC's policy toolkit, the yuan continued to face pressure from broad dollar strength.

The dollar remained firm after the Fed reinforced expectations that interest rates could stay higher for longer. Attention now turns to the upcoming PCE inflation report, which could shape the next move in policy expectations.

Brent crude extended its decline as improving US-Iran relations strengthened the global supply outlook. Higher tanker traffic through the Strait of Hormuz and continued Iranian exports kept pressure on oil prices.

Technology stocks were under pressure as high bond yields and stretched AI valuations weighed on sentiment. The latest selloff pushed major semiconductor names lower and kept Nasdaq on the defensive.

1. The euro fell to $1.136, its lowest level in a year, as a stronger dollar continued to weigh on currency markets.
2. The British pound broke below $1.32, hitting a seven-month low as June's composite PMI tumbled to 49.4, marking consecutive months of economic contraction
3. The yen hovered near 161.7 per dollar, remaining close to its weakest level since 1986. Comments from Japanese officials failed to provide lasting support.
4. The offshore yuan held near 6.81 per dollar, remaining close to a one-month low. The People's Bank of China introduced overnight reverse repo operations alongside its existing seven-day facility to improve short-term liquidity management
5. Gold steadied near $4,000 per ounce, holding close to an eight-month low as expectations for higher US interest rates continued to outweigh support from easing geopolitical tensions.
6. Silver stabilized around $57 per ounce on Thursday, hovering near its lowest level since November as a strong dollar and hawkish Federal Reserve rate hike projections suppressed market momentum.
7. Nasdaq 100 fell 3.3% to 29,347 as heavy selling across AI and semiconductor stocks accelerated the decline. Nvidia, AMD, and Micron led losses, pushing the index below the 30,000 level.
8. Brent crude dropped toward $73 per barrel, extending its four-session decline as improving US-Iran relations strengthened expectations for higher global supply.
9. Bitcoin traded near the $60,000-$61,000 range, with price action continuing to show lower highs and lower lows.

Technical Outlook on Charts
Euro Goes Back to One-Year Low
Gold Struggles Near Eight-Month Lows
Yen Hovers Near Historic Lows
Pound Slips Below $1.32
Silver Is Near Eight-Month Lows

BoJ Turns More Hawkish as Inflation Sticks

The Bank of Japan may be getting closer to faster rate hikes after board member Naoki Tamura said rates may need to rise every few months.

His message was clear: Japan has reached the 2% inflation target, so the BoJ may now focus more on controlling price pressure rather than supporting inflation.

Tamura also pointed to a possible neutral rate near 2%, meaning each hike will depend on inflation, growth, markets, and how households and businesses react.

The yen is also in focus. A more hawkish BoJ could support the currency and push Japanese bond yields higher.

Overall, markets may start pricing a more active BoJ tightening path if inflation stays firm. Yen pairs, JGB yields, and carry trades remain key areas to watch.

Micron Boosts the AI Trade Again

Micron’s strong outlook gave tech markets a fresh boost and helped calm concerns that the AI trade was losing momentum.

The key point is demand. Micron plays a major role in high-bandwidth memory, which is needed for AI servers, GPUs, and data centers. Strong guidance suggests AI-related demand is still growing fast.

The update also points to tight supply, which may support pricing power and margins for memory chipmakers like Micron, Samsung, and SK Hynix.
For markets, this was a positive signal. It shows the AI rally is still backed by real demand and better earnings expectations.

Still, valuations remain high, so sharp pullbacks are always possible. The next test will be whether other big tech names can deliver similar results.

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