EUR/USD trades above mid-1.1700s, close to two-week top as Iran peace hopes undermine USD
By Haresh Menghani
Updated: 7 May 2026
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The EUR/USD pair attracts some dip-buying during the Asian session on Thursday and stalls the previous day's late pullback from the 1.1800 neighborhood, or over a two-week high.
- EUR/USD stalls the previous day’s late pullback from over a two-week high amid a weaker USD.
- US-Iran peace deal hopes and fading hawkish Fed expectations continue to undermine the buck.
- Traders look to second-tier macro data for some impetus ahead of the US NFP report on Friday.
The EUR/USD pair attracts some dip-buying during the Asian session on Thursday and stalls the previous day's late pullback from the 1.1800 neighborhood, or over a two-week high. Spot prices currently trade just above mid-1.1700s, up nearly 0.10% for the day, and remain at the mercy of the US Dollar (USD) price dynamics.
The US Dollar (USD) struggles to capitalize on the previous day's upbeat US employment data-inspired bounce from a nearly three-week low and remains depressed for the second straight day amid hopes for a US-Iran peace deal. In fact, the ADP report showed that private-sector employment grew by 109K in April, compared to a downwardly revised reading of 61K in the previous month. This, however, was offset by the optimism over a potential agreement to end the Iran war.
US President Donald Trump struck an optimistic tone on Wednesday, saying that negotiations had made progress over the past 24 hours and that Iran wants to make a deal. Adding to this, Axios, citing two US officials, reported that the White House was nearing a deal with Iran on a one-page memorandum of understanding to end the conflict. This, along with fading hawkish US Federal Reserve (Fed) expectations, undermines the USD's reserve currency status and supports the EUR/USD pair.
However, according to the CME Group's CME FedWatch Tool, traders are still pricing in the possibility of a Fed rate hike by the end of this year. Furthermore, investors reassess the likelihood of a possible Iran-US peace deal amid major disagreements over Iran's nuclear program. This keeps investors on edge and could act as a tailwind for the Greenback, warranting caution before placing aggressive bullish bets around the EUR/USD pair and positioning for any further appreciating move.
Traders now look to the second-tier macro data – German Factory Orders, French Trade Balance, US Challenger Job Cuts, and Weekly Initial Jobless Claims – for some impetus. The focus, however, will remain glued to the US Nonfarm Payrolls (NFP) report on Friday. Apart from this, fresh developments surrounding the Middle East crisis might continue to infuse volatility, which, in turn, will drive the USD and produce trading opportunities around the EUR/USD pair.
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 Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.12% | -0.11% | -0.19% | -0.02% | -0.15% | -0.16% | -0.10% | |
| EUR | 0.12% | 0.01% | -0.06% | 0.11% | -0.04% | -0.04% | 0.02% | |
| GBP | 0.11% | -0.01% | -0.08% | 0.08% | -0.05% | -0.06% | 0.00% | |
| JPY | 0.19% | 0.06% | 0.08% | 0.16% | 0.03% | -0.02% | 0.10% | |
| CAD | 0.02% | -0.11% | -0.08% | -0.16% | -0.13% | -0.14% | -0.08% | |
| AUD | 0.15% | 0.04% | 0.05% | -0.03% | 0.13% | -0.00% | 0.05% | |
| NZD | 0.16% | 0.04% | 0.06% | 0.02% | 0.14% | 0.00% | 0.06% | |
| CHF | 0.10% | -0.02% | -0.00% | -0.10% | 0.08% | -0.05% | -0.06% |
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).
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