Foreign Exchange Market Update

April 1, 2026

United States

Private sector employment grew by 62,000 jobs in March after climbing by 66,000 jobs in February. Employment in the education and health services industry jumped by 58,000 jobs, while the construction industry added 30,000 jobs. Meanwhile, employment in the trade, transportation, and utilities industry slumped by 58,000 jobs. The manufacturing industry also shed 11,000 jobs. 04/01/2026 - 09:30:00 (RTTNews)

Retail sales in the U.S. increased in February. Retail sales climbed by 0.6% in February after edging down 0.1% in January. The slight retail sales growth partly reflected a rebound in sales by motor vehicle and parts dealers, which shot up by 1.2% in February after falling by 0.7% in January. However, excluding the jump in auto sales, retail sales still grew by 0.5% in February after coming in unchanged in January.

Sharp increases in sales by department stores, health and personal care stores, and clothing and accessories stores. Meanwhile, sales of grocery stores and furniture and home furnishings stores saw notable decreases during the month. Core retail sales, which exclude automobiles, gasoline, building materials, and food services, climbed by 0.5% in February after rising by 0.2% in January. 04/01/2026 - 09:51:00 (RTTNews)

Eurozone

Euro traded at 1.1611 against USD at 9:00 AM PST

The euro area unemployment rate rose slightly in February. The unemployment rate rose to 6.2% from 6.1% in January. In the same period last year, the jobless rate was 6.3%. Compared to last year, unemployment fell by 124,000. The unemployment rate among young people aged 25 and under remained unchanged at 14.9% in February. In the E.U., the unemployment rate was stable at 5.9% in February. Meanwhile, the youth unemployment rate rose slightly to 15.3% from 15.2% a month ago. 04/01/2026 - 05:55:00 (RTTNews)

The euro area manufacturing sector expanded at the fastest pace since mid-2022 in March, driven by increases in both production and new orders, but the war in the Middle East disrupted global logistics and intensified price pressures. The final manufacturing Purchasing Managers' Index (PMI) climbed to a 45-month high of 51.6 in March from 50.8 in February.

Factory output increased at the fastest pace in seven months, underpinned by a sustained increase in new orders. New export orders were virtually unchanged from France. There was an increase in their backlog of work, signaling capacity pressures for the first time since mid-2022. Nonetheless, employment declined at a faster pace.

Purchasing volumes were lifted marginally, ending a prolonged period of cutbacks that began in July 2022. Manufacturers reported an intensification of supply-chain pressures with delivery times lengthening to the greatest extent in just over three-and-a-half years. 
Regarding price pressures, input price inflation accelerated sharply to reach its highest level since October 2022. Output charges were subsequently raised more aggressively, the fastest in more than three years. Finally, business confidence declined to a five-month low amid the war in the Middle East.

Spain was the only country to post in contraction territory, recording the sharpest deterioration since April 2025. France's manufacturing sector stagnated, whereas Germany and Italy registered their strongest readings in 46 and 37 months.

Germany's manufacturing sector grew the most since May 2022, underpinned by output and new orders in March. The main cause of the rise in the index was the suppliers' delivery times index. However, cost pressures intensified amid the war. The final manufacturing PMI posted 52.2 compared to 50.9 in the previous month and the flash score of 51.7.

The French manufacturing sector stagnated in March after production declined following back-to-back months of growth, and new orders declined sharply as clients postponed or cancelled their orders, citing uncertainty from the Iran war. The final factory PMI edged down to 50.0 from 50.1 in February. The flash score was 50.2.

Italy's manufacturing growth improved in March despite high uncertainty and rising cost pressures. The factory PMI rose to 51.3 from 50.6 in February.

On the other hand, Spain's manufacturing activity returned to the contraction zone in March amid notable geopolitical uncertainty, supply-chain disruption and rising energy prices. The manufacturing PMI fell to 48.7 in March from 50.0 in February. 04/01/2026 - 05:35:00 (RTTNews)

United Kingdom Manufacturing Growth Moderates in March

British Pound traded at 1.3325 against USD at 9:00 AM PST

The UK manufacturing sector growth moderated in March as rising uncertainty around geopolitical tensions and the direction of domestic economic policy led to a scaling back of output. The final manufacturing Purchasing Managers' Index (PMI) registered 50.0 in March, down from 51.7 in February. Nonetheless, the index has remained above the neutral 50.0 mark for the fifth straight month.

Manufacturing output dropped for the first time in six months. Business optimism regarding production outlook hit its lowest since September 2025. Further, new orders grew for the fourth straight month, but the pace of growth weakened. That said, new export business continued its recent upturn.

The outbreak of war in the Middle East and closure of the Strait of Hormuz had a marked impact on supply chains and purchasing costs. Average vendor delivery times lengthened to the greatest extent in over four-and-a-half years.

Average input costs increased the most since October 2022, mainly reflecting spikes in energy prices. In turn, selling prices logged a marked increase. Pressures on margins led manufacturers to reduce hiring. Employment decreased at the fastest rate since September 2025. 04/01/2026 - 08:41:00 (RTTNews)