Foreign Exchange Market Update

September 1, 2026

United States

U.S. manufacturing activity showed a modest slowdown in the pace of growth in August. The manufacturing Purchasing Managers’ Index (PMI) dipped from 55.6 in July to 54.6 in August, although a reading above 50 still indicates growth. The modest pullback by the manufacturing PMI came a month after it reached its highest level since hitting 55.9 in May 2022.

Notable declines by the new orders and backlog of orders indexes, with the new orders falling from 56.7 in July to 53.7 in August and the backlog of orders index sliding from 55.7 in July to 52.5 in August. The employment index also decreased from 52.8 in July to 51.2 in August, suggesting a slowdown in the pace of job growth in the manufacturing sector.

The supplier deliveries index crept up from 58.9 in July to 59.3 in August, pointing to a continuing slowdown of the supply chain. 09/01/2026 - 10:32:00 (RTTNews)

Job openings in the U.S. increased in July, according to a report released by the Labor Department on Tuesday. The Labor Department said job openings rose from 7.182 million in June to 7.271 million in July. The report said hires fell from 5.332 million in June to 5.054 million in July, while total separations decreased from 5.337 million in June to 5.072 million in July. Within separations, quits dipped from 3.213 million in June to 3.056 million in July, while layoffs and discharges slid from 1.785 million in June to 1.666 million in July. 09/01/2026 - 10:25:00 (RTTNews)

Eurozone

Euro traded at 1.1592 against USD at 9:00 AM PST

The euro area manufacturing sector expanded at the strongest pace since 2022 in August, driven by robust production and new orders. The manufacturing Purchasing Managers' Index (PMI) hit a 51-month high of 52.7 in August from 51.9 in July. Both factory output and incoming new orders increased at their fastest rates since early 2022, supporting renewed purchasing activity growth and a pick-up in business confidence.

Inflation continued its downward path, although rates of increase in both input costs and output prices were still above those seen immediately prior to the Middle East war. A considerable contribution to the manufacturing growth stemmed from the Eurozone's largest economy, Germany, which registered the strongest production growth in over four-and-a-half years. At 54.3, the factory PMI hit a 51-month high, up from 52.2 in July. The flash reading was 54.1.

France also helped to lift the overall expansion in the euro area. There was a mild recovery with output rising for the first time since April. The factory PMI posted 51.1, up from 49.8 in July. The flash score was 51.5. However, growth in Germany and France was somewhat offset by a renewed decline in Italy's goods-producing economy. Italian manufacturers reported the first contraction since the start of the year. The factory PMI hit 49.6, down from 51.3 in the previous month. Spain also slipped into contraction territory in August amid concurrent falls in output and new orders. The manufacturing PMI dropped from 50.2 in the previous month to 49.5. 09/01/2026 - 09:30:00 (RTTNews)

The euro area unemployment rate remained unchanged in July. The jobless rate stood at 6.4% in July, unchanged from June. In the same period last year, the unemployment rate was 6.3%. The number of people out of work remained unchanged from June, at 11.264 million. Compared to last year, unemployment increased to 175,000. The youth unemployment rate edged down from 15.0% in June to 14.9% in July. Youth unemployment decreased by 26,000 from June. The EU unemployment rate remained stable in July, at 6.1%. This was slightly up from last year's 6.0%. 09/01/2026 - 07:33:00 (RTTNews)

Eurozone inflation accelerated to the highest level in nearly three years in August, reinforcing expectations for an interest rate hike at the European Central Bank's (ECB) meeting next week. Inflation advanced from 2.9% in July to 3.3% in August. The rate was the highest since September 2023, when inflation was 4.4%.

Inflation continues to remain above the ECB’s medium-term target of 2%. Meanwhile, core inflation, which excludes prices of food, alcohol and energy, softened to 2.4%. Monthly, consumer prices increased 0.4% in August. Energy prices rose at a faster pace of 14.3% after climbing 10.3%. Non-energy industrial goods prices grew 1.2% following a 0.9% rise. Prices of food, alcohol, and tobacco logged a steady growth of 1.2%, while services inflation softened from 3.3% to 3.0%. 09/01/2026 - 05:53:00 (RTTNews)

United Kingdom Manufacturing Growth Eases in August

British Pound at 1.3529 against USD at 9:00 AM PST

The UK manufacturing activity expanded at the weakest pace in five months in August as rates of growth in both output and new orders lost momentum. The manufacturing Purchasing Managers' Index (PMI) dropped from 51.9 in July to 51.7 in August. However, a score above 50 indicates expansion in the sector. The flash reading was 51.5. Output grew at the weakest pace in five months in August. The overall expansion was supported by increased intakes of new work, with demand from both domestic and overseas clients improving.

Export orders increased for the eighth successive month in August amid robust demand for consumer and investment goods, along with more gains from mainland China, the US, the Middle East, and Western Europe. Rising production requirements forced firms to raise their workforce numbers at the quickest pace in two years. Supply chain pressures persisted in August, though average supplier lead times lengthened to the least marked extent for six months. On the price front, input price inflation eased to the weakest level since February, and selling prices rose at the slowest pace in six months. 09/01/2026 - 10:27:00 (RTTNews)