Here’s what you need to know on Thursday, May 7th.
The U.S. dollar index (DXY) is currently hovering around 98.00. While losses are somewhat restrained by strong U.S. economic data, the potential downside is mitigated by a more positive risk environment; Axios reported that a U.S.-Iran agreement to resolve ongoing tensions is near.
This easing of geopolitical tension has alleviated fears about long-term disruptions in global energy supplies, which in turn has bolstered currencies associated with risk, while applying downward pressure on the demand for the safe-haven dollar. Nevertheless, the dollar did find some support following the ADP employment figures, which indicated that U.S. private employers added 109,000 jobs in April—surpassing expectations of 99,000 and showing an improvement from a revised 61,000 increase in March.
USD price today
The table below summarizes how the U.S. dollar (USD) is faring against major currencies today, with the dollar performing the best against the Canadian dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.52% | -0.42% | -0.97% | 0.09% | -0.79% | -1.22% | -0.60% | |
| EUR | 0.52% | 0.09% | -0.44% | 0.63% | -0.27% | -0.73% | -0.08% | |
| GBP | 0.42% | -0.09% | -0.53% | 0.54% | -0.36% | -0.81% | -0.15% | |
| JPY | 0.97% | 0.44% | 0.53% | 1.06% | 0.16% | -0.25% | 0.40% | |
| CAD | -0.09% | -0.63% | -0.54% | -1.06% | -0.88% | -1.31% | -0.68% | |
| AUD | 0.79% | 0.27% | 0.36% | -0.16% | 0.88% | -0.43% | 0.18% | |
| NZD | 1.22% | 0.73% | 0.81% | 0.25% | 1.31% | 0.43% | 0.64% | |
| CHF | 0.60% | 0.08% | 0.15% | -0.40% | 0.68% | -0.18% | -0.64% |
This heat map illustrates the percentage change between major currencies. The base currency can be selected from the left column, with the quote currency from the top row.
EUR/USD has gained traction around 1.1750, but there isn’t much room for it to rise further, as the market weighs the strength of U.S. labor data against a backdrop of safe-haven liquidity.
GBP/USD is holding steady near the 1.3600 mark, finding it tough to gain momentum due to the dollar’s support from solid employment figures and cautious market positioning.
The USD/JPY has recovered a bit from earlier losses, holding around 156.40. This situation is quite dynamic, with decreasing safe-haven demand for the dollar combined with encouraging U.S. economic data. Investors are also closely watching the Bank of Japan’s policy direction.
The AUD/USD has moved up toward the 0.7240 range, driven by increasing optimism surrounding the potential U.S.-Iran agreement, which has also enhanced demand for the Australian dollar.
West Texas Intermediate (WTI) crude oil has fallen to about $94.90 per barrel. This decline comes as concerns over lengthy supply restrictions in the Middle East diminish, following reports about progress toward a U.S.-Iran deal.
Gold prices surged around $4,700 as investors shifted back to risk-sensitive assets, reflecting hopes of reduced geopolitical tensions and diminishing demand for safe-haven products.
Here’s what’s next on the docket:
Thursday, May 7th:
- australian trade balance
- German factory orders March month-on-year change
- Eurozone retail sales March month-on-year change
- U.S. Challenger headcount reductions
- Number of new unemployment insurance claims in the US
- US non-agricultural productivity Q1 prerel
- US unit labor costs Q1 ago
Friday, May 8th:
- German industrial production March month-on-year change
- Eurozone trade balance March
- Canadian employment data
