Daily Market Report
08/04/2026
EUR/USD ranged in the low 1.15s overnight. EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.
The core Eurozone inflation accelerated to 2.5% YoY in July versus 2.4% prior, above the consensus of 2.4%. Financial markets are betting on more than two ECB rate hikes, with moves fully priced in by October and April, according to Reuters.
The US employment data will be the highlight later on Friday, which could offer some hints about the health of the labor market and US interest rate path. Economists expect Nonfarm Payrolls (NFP) to increase by 83,000 in July, while the Unemployment Rate is projected to rise to 4.3% during the same period. In case of stronger-than-expected outcomes, this could lift the Greenback in the near term.
GBP/USD trades slightly lower at around 1.3423, but is holding above the 20-day exponential moving average (EMA) at 1.3389 and retaining a mildly bullish near-term bias. The pair has reclaimed short-term trend support, while the downward resistance trend line, with a key break reference at 1.3473, now caps the topside.
Immediate resistance is seen at the trend-line break area near 1.3473, ahead of the psychological level at 13500. On the downside, initial support is provided by the 20-day EMA at 1.3389, which should act as a cushion on pullbacks; a daily close back below this level would weaken the current bullish tone and expose it to the July 28 low at 1.3274.
USD/JPY resumes its recovery toward 158.00 in the European session on Tuesday. However, buyers remain wary amid further intervention risks. A joint US-Japan FX intervention on Friday and hints of further action continue to underpin the Japanese Yen. Furthermore, fresh US-Iran concerns keep the US Dollar’s rebound intact, supporting the major.
Source: FX Street