Forex Today: US Dollar holds firm amid fragile US-Iran peace talks
Here is what you need to know for Friday, May 8:
The US Dollar Index (DXY) is trading with a softer tone near the 98.10 area as markets continue reacting to rapidly shifting headlines surrounding the potential peace agreement between the United States (US) and Iran.
Initial optimism emerged after reports suggested that both sides were moving toward a temporary deal that could reopen the Strait of Hormuz and reduce tensions across the Middle East.
However, sentiment later turned more cautious after additional reports indicated that major disagreements remain unresolved, particularly regarding maritime access, sanctions relief, and broader security conditions. Iran reportedly rejected parts of the US-backed reopening framework for the Strait of Hormuz, increasing uncertainty and limiting the improvement in overall risk appetite.
Meanwhile, US economic data showed Initial Jobless Claims rising to 200K from 190K, though the figure remained below market expectations near 205K–206K. Continuing Claims declined to 1.766 million, signaling that layoffs remain historically low and reinforcing the view that the US labor market remains resilient ahead of Friday’s Nonfarm Payrolls report.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.03% | 0.13% | 0.25% | 0.03% | 0.16% | 0.08% | 0.07% | |
| EUR | -0.03% | 0.09% | 0.24% | 0.01% | 0.13% | 0.05% | 0.03% | |
| GBP | -0.13% | -0.09% | 0.13% | -0.10% | 0.03% | -0.04% | -0.07% | |
| JPY | -0.25% | -0.24% | -0.13% | -0.23% | -0.09% | -0.21% | -0.17% | |
| CAD | -0.03% | -0.01% | 0.10% | 0.23% | 0.13% | 0.05% | 0.03% | |
| AUD | -0.16% | -0.13% | -0.03% | 0.09% | -0.13% | -0.08% | -0.10% | |
| NZD | -0.08% | -0.05% | 0.04% | 0.21% | -0.05% | 0.08% | -0.02% | |
| CHF | -0.07% | -0.03% | 0.07% | 0.17% | -0.03% | 0.10% | 0.02% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
EUR/USD is trading near the 1.1740 zone, erasing almost all intraday losses amid easing safe-haven demand, which supports the shared currency.
GBP/USD fell around the 1.3570 region, erasing the broader pullback in the Greenback despite lingering caution across global markets.
USD/JPY elevated near the 156.80 area, amid rising US Treasury yields and ongoing uncertainty surrounding Middle East developments.
AUD/USD fell toward the 0.7220 area even as lower Oil prices support commodity-linked currencies like the Aussie.
West Texas Intermediate (WTI) Oil remains highly volatile near the $96.30 per barrel after plunging earlier in the session on optimism about a peace deal. It recovered as reports suggested negotiations remain fragile.
Gold trades with a softer tone near the $4,710 area, pressured by reduced safe-haven demand amid optimism surrounding the potential US-Iran agreement earlier in the day, though uncertainty surrounding the negotiations continues to limit downside momentum.
What’s next in the docket:
Friday, May 8:
- Germany Industrial Production March MoM YoY
- Eurozone Trade Balance March
- Canadian Employment data
- US NFP report
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
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