Daily Market Report
08/5/2026
EUR/USD ranged in the low to mid 1.15s overnight. The Greenback may face challenges due to easing safe-haven demand amid building diplomatic momentum around a potential agreement to reopen the Strait of Hormuz. Qatari officials announced on Tuesday that an interim proposal had been drafted, with both Washington and Tehran signaling tangible progress toward restoring access to the critical maritime transit route. This diplomatic breakthrough follows US President Donald Trump’s decision to suspend planned military strikes against Iran, choosing instead to give negotiations space while maintaining his call for the immediate reopening of the waterway.
EUR/USD holds ground near 1.1550 in the early European hours on Wednesday. The pair stays supported amid hopes for a US-Iran deal on the reopening of the Strait of Hormuz, which lifts risk sentiment and keeps the safe-haven US Dollar on the back foot. The US ADP Employment data and ISM Services PMI report are in the spotlight alongside Mideast headlines.
The US Bureau of Labor Statistics revealed on Tuesday that US JOLTS Job Openings stood at 7.359 million in June. This figure followed the 7.537 million openings seen in May and came in below the market expectation of 7.4 million.
Traders will closely monitor the US July employment data on Friday, which could offer more clues about the health of the labor market and the US interest rate path. In case of weaker-than-expected outcomes, this could undermine the USD against the EUR in the near term.
GBP/USD is inching higher above 1.3450 in European trading on Wednesday, helped by reduced haven appeal for the US Dollar as markets cheer a potential US-Iran deal on the Strait of Hormuz reopening. The decision is due later in the day. Traders also look forward to the US ADP and ISM Services PMI data.
The Japanese Yen gives back its early gains and flattens at around 157.70 against the US Dollar during the European trading session. The USD/JPY bounces back as the Asia-Pacific currency faces pressure, with investors turning cautious regarding the sustainability of its recent strength.
Source: FX Street