The EUR/USD pair saw a slight increase to around 1.1730 during early trading in Asia on Monday, driven by a rising sense of optimism regarding a potential peace agreement between the U.S. and Iran. However, as the day progresses, traders might adopt a more cautious stance, particularly with the much-anticipated U.S. nonfarm payrolls report set to be released for April.
In the meantime, the Trump administration is preparing to respond to Iranian proposals aimed at reopening the Strait of Hormuz and concluding ongoing conflicts. Iranian officials mentioned on Wednesday that they are contemplating a U.S. peace proposal, which reportedly would formally end hostilities but would leave some critical U.S. demands—specifically concerning Iran’s nuclear program and the Strait of Hormuz—unresolved.
If tensions in the Middle East ease, this could weaken safe-haven currencies, including the U.S. dollar, and provide support for major currency pairs.
Later on Friday, all eyes will be on the U.S. employment report for April. It’s projected that the U.S. economy will add around 62,000 jobs, with the unemployment rate expected to remain stable at 4.3%. Analysts suggest that the Federal Reserve may keep interest rates elevated for an extended period if the job report is favorable, potentially leading to a stronger U.S. dollar against the euro.
