Daily Market Report

08/03/2026

EUR/USD ranged in the low to mid 1.15s overnight. EUR/USD struggles with its recovery above 1.1500 in European trading on Monday, despite broad US Dollar weakness and improved risk sentiment. The USD loses traction following US President Trump’s call off an attack on Iran and that talks between the two sides would happen on Monday. Traders will closely monitor the developments surrounding US-Iran negotiations and US ISM PMI data.

Traders brace for the German Retail Sales data for June, which is due later on today. If the reports come in weaker than expected, this could drag the shared currency lower. On the US docket, the US ISM Manufacturing Purchasing Managers Index (PMI) data will be published.

Analysts note that the Euro received “a modest lift” earlier in the session after French CPI data “came in well above expectations,” but stress that the support quickly faded as “the impact was short-lived as broader themes took hold.” They add that “comments from the ECB have been limited and the speaking calendar is empty over the next week or so,” leaving the currency largely to trade on prevailing macro drivers rather than fresh policy signals.

The British Pound is trimming previous gains against the US Dollar on Monday, returning to the mid-range of the 1.3400s down from fresh seven-week highs, above 1.3500 earlier on the day. Weaker-than-expected UK manufacturing data added pressure on the Pound, which rallied at the Asian session opening, amid news of a halt to the hostilities in Iran.

The Pound is drawing some support from a moderate risk-off mood as the US and Iran halted hostilities, and US President Donald Trump’s affirmed that a new round of negotiations will begin on Monday.

The US Dollar is also struggling in the aftermath of an exceptional coordinated intervention between the US and Japan to shore up an ailing Japanese Yen. The USD/JPY dropped more than 3.5% on Thursday and Friday, and posted another spike on Monday, triggering speculation of another intervention. These sharp declines have reverberated in most US Dollar cross-rates, weighing the Greenback across the board.

USD/JPY is extending its recovery toward 157.00 in the European session on Monday, following a sharp slide in Asia to three-month lows below 155.50. The Japanese Yen saw a sudden surge of over 1% following reports of a joint intervention by the United States and Japan last week, which fuelled speculation of further intervention. Both sides vowed more such coordinated efforts in the future, which keeps the Japanese Yen still underpinned.

Source: FX Street