Fed Hike Expectations Soar Above 70%, Markets Feel Pressure

The Federal Reserve's anticipated rate hike has pushed market expectations above 70%, according to the CME FedWatch Tool, leading to renewed dollar strength and higher Treasury yields. This trend is putting downward pressure across markets.

The GBP/USD and Dow Jones charts are now at key support levels, while daily momentum indicators suggest oversold conditions, potentially triggering a reversal.

The U.S. Dollar Index has rebounded towards its 2026 uptrend near 101, with the euro testing daily overbought and oversold conditions last seen in June and near yearly extremes. The dollar's resurgence is challenging gold and silver's bullish bias, although they still maintain their upward momentum.