The U.S. dollar extended losses against major currencies during the week ended May 8 despite data from the U.S. that showed a resilient job market. Fading safe haven demand dragged down the dollar amidst President Trump's assertion that the ceasefire between Washington and Tehran remained intact despite the recent flare-up in the Strait of Hormuz.
The Dollar eased amidst expectations surrounding the diplomatic efforts to end the Middle East conflict, that eclipsed the monetary policy outlook swayed by the better-than-expected readings from the labor market.
During week ended May 8, the U.S. dollar inter alia declined against the euro, the British pound, the Australian dollar, the Japanese yen as well as the Swiss franc. It however rallied against the Swedish krona as well as the Canadian dollar. As a result, the Dollar Index which measures the Dollar's strength against a basket of 6 currencies dropped more than a quarter percent on a weekly basis. Here is a quick recap of the dollar's trajectory during the week ended May 8.
Data released on Friday by the U.S. Bureau of Labor Statistics showed an addition of 115 thousand to non-farm payrolls during April versus 62 thousand that the markets had anticipated. The unemployment reading remained steady at 4.3 percent in line with market expectations. Nevertheless, markets expect the Federal Reserve to keep interest rates unchanged through the remainder of the year.
During the past week, the Dollar Index traded between the weekly high of 98.58 recorded on Tuesday and the weekly low of 97.63 recorded on Wednesday. The index eventually closed the week's trading at 97.90, implying a decline of 0.26 percent from the level of 98.16 on May 1. The decline is also attributed to markets tempering expectations of a rate hike by the Federal Reserve after the release of the jobs data.
Bolstered by the dollar's weakness, the EUR/USD pair jumped 0.55 percent during the week ended May 8. The common currency's surge against the greenback came amidst President Trump affirming the ceasefire despite tensions in the Middle East witnessing a fresh flare-up. From the weekly low of 1.1676 touched on Tuesday, the pair climbed to a high of 1.1797 on Wednesday. The pair eventually closed the week at 1.1786, versus 1.1721 a week earlier.
The British pound rallied 0.43 percent against the greenback during the week ended May 8. The GBP/USD pair which had closed at 1.3576 on May 1 closed trading for the week ended May 8 at 1.3634. The weekly trading range was wider, between a low of 1.3511 recorded on Monday and a high of 1.3645 recorded on Wednesday.
The Australian Dollar jumped more than half percent against the U.S. Dollar during the past week in the backdrop of a widely expected rate hike by the Reserve Bank of Australia. The AUD/USD pair rallied from the level of 0.7206 recorded on May 1 to close the week ended May 8 at 0.7247. During the week, the pair oscillated between a low of 0.7135 recorded on Tuesday and the high of 0.7279 recorded on Wednesday.
The U.S. dollar declined against the Japanese yen also during the week ended May 8 amidst suspected intervention by Japanese authorities. The USD/JPY pair closed the week at 156.67 versus 157.06 a week earlier, registering a loss of 0.25 percent. During the week, the pair oscillated between the high of 157.95 and the low of 155.04, both recorded on Wednesday.
Amidst fading hopes of peace between the U.S. and Iran as well as anxiety ahead of the release of inflation readings from the U.S., the dollar has firmed up further. The six-currency Dollar Index touched a high of 98.16 on Monday and is currently trading at 98.00, implying an overnight addition of 0.10 percent from Friday's closing level of 97.90.
The EUR/USD pair is currently trading 0.13 percent lower at 1.1771 versus 1.1786 on Friday. The GBP/USD pair is currently trading near 1.3605 versus 1.3634 on Friday, implying a decline of 0.21 percent. The AUD/USD pair is currently trading 0.14 percent lower at 0.7237 versus 0.7247 on Friday. Amidst the dollar's rebound, the USD/JPY pair is now 0.29 percent higher at 157.12 as compared with the level of 156.67 recorded at the end of the previous week.
For comments and feedback contact: editorial@rttnews.com
Forex News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.