EUR/USD news for August 8, 2026
The euro strengthened against the dollar after US non-farm payrolls unexpectedly contracted, with prior months revised lower, signaling deeper labor market weakness. The data led investors to rethink expectations for further Federal Reserve rate hikes, which supported EURUSD.
How the day unfolded
EURUSD climbed as a surprisingly weak US jobs report, with Non-Farm Payrolls contracting by 23k and downward revisions, prompted markets to reverse expectations for a September Federal Reserve rate hike, pressuring the US dollar. The euro also drew support from positive eurozone data, including better-than-forecast German industrial output, and lower oil prices, helping it hold near three-week highs.
The euro is underpinned by a weaker US dollar after disappointing Non-Farm Payrolls data pointed to labor market weakness and dampened expectations for a September Federal Reserve rate hike. Positive eurozone fundamentals, including better-than-expected German industrial output, and lower oil prices are also lending support, keeping the pair near three-week highs.
The euro strengthened after US Non-Farm Payrolls unexpectedly contracted by 23k, with downward revisions revealing deeper labor market weakness. This weakened the case for Federal Reserve rate hikes, pressuring the US dollar. Additionally, better-than-expected German industrial output provided further support for the euro.
The euro strengthened against the U.S. dollar after the latest U.S. Non-Farm Payrolls report showed a surprise contraction of -23k jobs, with downward revisions to prior months pointing to deeper labor market weakness. This disappointing jobs data has cast doubt on further Federal Reserve rate hikes, prompting a reassessment of interest rate expectations that weighed on the greenback. Additional cross-currents, including a U.S. euro sale tied to yen support that reportedly caught the European Central Bank off guard, added to the market's cautious tone.
The euro strengthened against the dollar after the US Non-Farm Payrolls report showed a surprise contraction of 23k jobs, with downward revisions signaling deeper labor market weakness. This prompted markets to reverse expectations for a September Federal Reserve rate hike, undermining the dollar. The currency pair's move reflects the shift in relative monetary policy outlook.
Headlines (10)
- Euro steadies at three-week highs amid positive data and lower Oil priceswww.fxstreet.com · Aug 6, 06:21 UTC
- US Dollar Tumbles as 'Sell America' Trade Returns. Forecast as of 06.08.2026www.litefinance.org · Aug 6, 06:32 UTC
- US euro sale to prop up yen blindsided European Central Bankwww.ft.com · Aug 7, 01:05 UTC
- Euro steadies against the British Pound following another rejection at the 0.8580 areawww.fxstreet.com · Aug 7, 07:07 UTC
- Euro remains stronger against Canadian Dollar as German Industrial output beats forecastswww.fxstreet.com · Aug 7, 08:04 UTC
- How have interest rate expectations changed after this week's events?investinglive.com · Aug 7, 10:58 UTC
- US Non-Farm Payrolls Contract -23k. Revisions Expose Deeper Labor Market Weaknesswww.actionforex.com · Aug 7, 12:43 UTC
- Euro surges as shocking US NFP reverses Fed September hike expectationswww.fxstreet.com · Aug 7, 13:01 UTC
- EUR/JPY recovers from session low but remains down on Fridaywww.fxstreet.com · Aug 7, 18:49 UTC
- Surprise US job weakness casts serious doubt on Fed rate hikesthink.ing.com · 05:00 UTC
Scheduled events
As of 21:12 UTC
- 2026-08-08 — FOMC Member Bowman Speaks · USD
- 2026-08-10 — Sentix Investor Confidence · forecast -0.7 · EUR
- 2026-08-10 — German Buba Monthly Report · EUR
- 2026-08-10 — Cleveland Fed Inflation Expectations · USD
- 2026-08-10 — German WPI m/m · EUR
- 2026-08-11 — Italian Trade Balance · forecast 4.74B · EUR
- 2026-08-11 — NFIB Small Business Index · forecast 97.8 · USD
- 2026-08-11 — Existing Home Sales · forecast 4.05M · USD
Not investment advice. For informational purposes only.