Foreign Exchange Market Update

October 6, 2026

U.S. Trade Deficit Widens to Seventeen-Month High in August

A report released by the Commerce Department on Tuesday showed the U.S. trade deficit widened in August. The Commerce Department said the trade deficit increased from $92.8 billion in July to $105.6 billion in August. With the increase, the trade deficit reached its highest level since setting a record high in March 2025. The trade deficit came as the value of imports spiked, outpacing a jump in the value of exports. The Commerce Department said the value of imports soared by 4.3% to $420.8 billion in August after surging by 3.9% to $403.6 billion in July.

The report showed a significant increase in imports of industrial supplies and materials, including crude oil, as well as a jump in imports of capital goods. Meanwhile, the Commerce Department said the value of exports jumped by 1.4% to $315.2 billion in August after tumbling by 2.1% to $310.7 billion in July. A surge in exports of industrial supplies and materials was partly offset by a slump in exports of consumer goods, particularly pharmaceuticals. The report also said the goods deficit widened from $123.8 billion in July to $136.6 billion in August, while the services surplus was nearly unchanged at $31.0 billion. 10/06/2026 - 09:53:00 (RTTNews)

Eurozone

Euro traded at 1.1266 against USD at 9:00 AM PST

Eurozone retail trade volume grew marginally in August as the increases in food and non-food categories were partially offset by a notable fall in fuel sales. Retail sales rose 0.1% monthly in August, following July's 0.6% decrease. Food, drinks, and tobacco sales edged up 0.1%, and non-food products sales were up 0.5%. Meanwhile, automotive fuel in specialized stores declined 1.9%, offsetting broader gains across other retail categories.

On a yearly basis, growth in retail sales doubled from 0.4% in the previous month to 0.8%.

EU retail sales rose 0.1% in August and 1.2% year on year. Among member states for which data are available, the highest monthly increases in the total retail trade volume were recorded in Romania, Sweden, and Germany. Meanwhile, Luxembourg, Malta and Latvia registered the largest decreases. 10/06/2026 - 06:45:00 (RTTNews)

Germany's factory orders declined sharply in August, largely because demand for aircraft, ships, trains, and military vehicles collapsed. Factory orders plunged 10.6% from the previous month, in contrast to the 3.2% rise in July. When large-scale orders are excluded, new orders were 0.1% lower than in the previous month. The monthly fall in orders was almost entirely attributable to the sharp decline in the "manufacture of other transport equipment" sector. Orders for aircraft, ships, trains, and military vehicles fell significantly by 61.5%.

New orders for capital goods were down 15.3%. At the same time, orders for intermediate goods and consumer goods declined 2.6% and 7.3%. Foreign orders dropped 5.4% in August as orders from the euro area slid 5.4% and those from outside the euro area decreased 5.5%. Meanwhile, domestic orders declined markedly by 17.3%. On a yearly basis, factory orders’ growth eased sharply from 14.0% in the prior month to 2.7%. Further, real turnover in manufacturing remained unchanged, following a decrease of 1.4% in July. 10/06/2026 - 09:28:00 (RTTNews)

France industrial production declined in August despite the rebound in manufacturing output. Industrial output fell 0.3% month-on-month, slower than the 0.6% decrease in July. Manufacturing output rose 0.3% in August, in contrast to the 0.8% decrease in July. Output fell back in mining and quarrying, and energy and water supply decreased 2.4%, mainly due to a decrease in electricity production, after reaching its highest level since December 2021 in July. In August, output increased by 0.7% after remaining flat in July. 10/06/2026 - 08:58:00 (RTTNews)

Spain's industrial production grew at a slower pace in August due to the fall in consumer goods output. Industrial production rose 1.5% from a year ago, following a 2.5% rise in July. Nonetheless, output has increased for the sixth straight month. Within overall output, energy production advanced the most, up by 4.7%. Production of capital and intermediate goods moved up 0.9% and 2.0%. Partially offsetting these gains, consumer goods output slid 1.0%. On an unadjusted basis, industrial output climbed 1.6% from last year after rising 2.8% in July. Month-on-month, industrial output fell 0.7%, in contrast to the 0.6% increase in July. 10/06/2026 - 09:49:00 (RTTNews)