August 12, 2026

The EUR/USD pair climbed to its highest level in seven weeks after President Trump announced that progress was being made towards a US-Iran deal to end the recent conflict.
The British pound eased lower in a month that traditionally has been the worst-performing for Sterling. Weaker manufacturing data increased expectations that a possible Bank of England rate hike may be delayed until the end of the year.
The USD/JPY bounced off an almost three-month low to finish higher. This followed a combined action from the US and Japan to intervene in the currency markets to support the yen.
Gold prices jumped to a seven-week peak after US nonfarm payrolls data came in at -23,000, far lower than the 85,000 expected. The markets no longer foresee a Fed rate hike in September.
The US S&P 500 hit an all-time high after SpaceX and AMD posted better-than-expected earnings. Friday’s lower employment numbers reduced the chances of a Fed rate hike in September.
Oil prices fell sharply early in the week as hopes rose that the Strait of Hormuz might be reopened, but losses were pared by reports that Iran was taking a hard line in negotiations.