Today's session on the currency market brings a continuation of the weakness of the US dollar against other currencies. There is especially a lot going on in the British pound market, which is recording its biggest daily gain since 2020! Signs of a complicated labor market situation in the UK gave hope to speculators that the BoE will tighten macroeconomic policy next month.
The Euro gained after comments from Klaas Knot, a member of the ECB Council, who first signaled the possibility of a 50 basis point hike if inflation data forces the issue. Investors now assume that the ECB will raise rates by one percentage point by December.
Meanwhile, strong U.S. retail sales data improved risk sentiment on Tuesday, boosting stocks and weakening the dollar against all G10 currencies except the Japanese yen.
US Dollar Index (USDIDX) vs EUR/USD; GBP/USD. H1 interval. Source: xStation 5
🔴 Three markets to watch next week: EURUSD, CH50cash, OIL (08.05.2026)
BREAKING: US Labor Market Stronger Than Expected, While Wage Pressure Eases. EURUSD gains!🚨
📈 EURUSD up 0.4% before the NFP
Morning wrap: Indices climb despite shots fired in the Strait of Hormuz 📈 💥
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
