Foreign Exchange Market Update

July 25, 2025

Eurozone

Euro traded at 1.1727 against USD at 9:00 AM PST

German business confidence improved to the highest level in more than a year in July despite heightening trade tensions. The business climate index registered 88.6 in July, up from 88.4 in the previous month. Overall sentiment improved as companies were slightly more satisfied with their current business. The current situation indicator advanced to 86.5 from 86.2 a month ago. 

At the same time, the expectations indicator edged up to 90.7 from 90.6 in the previous month. The score was seen at 91.1. In manufacturing, the business climate index strengthened in July with notable increases in assessments about their current situation. The business climate in the services sector deteriorated. Current business activity was assessed less favorably. In construction, the index rose again in July. Both assessments of the current situation improved. 07/25/2025 - 06:17:00 (RTTNews)

French consumer confidence improved marginally in July. The consumer sentiment index rose to 89 in July from 88 in the previous month.  The assessment of personal financial situation, both past and future, improved slightly in July, with each index rising one point to -23 and -13.

The proportion of households that believe it is a good time, in the current economic situation, to make major purchases remains stable. The corresponding balance stood at -26. At the same time, the index measures whether it is a good idea to save, gaining two points to 42. It returned to the historic maximum already reached in February 2025.

Consumers' assessments about their ability to save, current, and future improved in July. The balance of opinion regarding their future savings capacity rose two points to 14, and the one related to their current savings capacity climbed one point to 18. The index for future standard of living in France declined one point to -61, its lowest level since March 2023. The one related to the past standard of living was stable at -70.

Households' fears about unemployment dropped again. The corresponding balance lost four points to 54. The proportion of households that consider that prices will accelerate over the next twelve months increased again. The balance climbed five points to -31, the highest level since April 2023. Similarly, the index measuring the past increase in prices rebounded in July. The index moved up two points to -5. 07/25/2025 - 05:27:00 (RTTNews)

United Kingdom (U.K.) Retail Sales Rebound as Warm Weather Boosts Spending

British Pounds traded at 1.3427 against USD at 9:00 AM PST

U.K. retail sales recovered in June as warm weather boosted consumer spending, but consumer sentiment weakened amid fears of possible tax rate hikes. Retail sales grew 0.9% monthly, in contrast to the revised 2.8% drop in May. 

Excluding auto fuel, retail sales advanced 0.6%, reversing a 2.9% drop in May. Food store sales gained 0.7% driven by improved sales volumes in supermarkets. At the same time, non-food store sales grew only 0.2%. Automotive fuel sales increased 2.8%, marking the largest monthly rise since May 2024.

Following two consecutive falls, online sales rose across most sectors in June. Online spending values grew 2.3% in June from the previous month. Retail sales volume advanced 1.7% from the previous year, following a 1.1% decrease in May. Excluding auto fuel, retail sales rebounded 1.8% after falling 1.2% in the previous month. 

British consumer sentiment weakened in July as households were more concerned about possible tax hikes in the autumn budget. The consumer sentiment index slid one point to -19 in July.  07/25/2025 - 08:49:00 (RTTNews)