Foreign Exchange Market Update

July 7, 2026

United States Trade Deficit Widens Substantially in May

A report released by the Commerce Department on Tuesday showed a substantial increase in the size of the U.S. trade deficit in May. The Commerce Department said the trade deficit widened from $54.6 billion in April to $77.6 billion in May. The sharply wider trade deficit came as the value of imports shot up by 3.3% to $395.3 billion, while the value of exports plunged by 3.2% to $317.7 billion. 07/07/2026 - 08:39:00 (RTTNews)

Eurozone

Euro traded at 1.1427 against USD at 9:00 AM PST

Germany's industrial production grew in May despite geopolitical tensions and elevated energy prices, raising hopes of a gradual economic recovery. Industrial output advanced 0.9% monthly, faster than the 0.2% rise in April. A similar, faster growth was last seen in September.

Excluding energy and construction, industrial output was up 0.8% from April. Capital goods output climbed 1.3%, and that of consumer goods rose 1.2%. Meanwhile, intermediate goods output dropped 0.4%. Energy production increased 0.8%, and construction registered a 0.9% expansion. Yearly, industrial production remained flat in May after falling 0.9% in April. Factory orders expanded 1.9% monthly in May, in contrast to a 3.2% decrease in April. 07/07/2026 - 07:12:00 (RTTNews)

France's trade deficit widened sharply in May as exports dropped for the first time in three months. The trade balance showed a deficit of EUR 6.9 billion compared to a shortfall of EUR 5.4 billion in April. In the same period last year, the deficit totaled EUR 6.5 billion.

Exports declined 2.0% monthly in May due to a drop in military equipment sales. Meanwhile, imports grew 0.7% from April, reflecting a rise in acquisitions of transport equipment and auto products. Yearly, exports advanced 5.9%, and imports increased 5.3%. 07/07/2026 - 05:45:00 (RTTNews)