Foreign Exchange Market Update

February 24, 2026

French Manufacturing Sentiment Weakens

Euro traded at 1.1788 against USD at 9:00 AM PST

French manufacturing sentiment weakened to a three-month low in February, driven by a decline in production outlook and orders. The manufacturing confidence index dropped to 102 from 105 in the previous month. This was the lowest reading since November and remained below its long-term average of 100. The overall weakness in sentiment largely reflects deterioration in manufacturers' opinion regarding production and their global order books.

The past production index fell to 3 in February from 7 in the previous month. Meanwhile, the index measuring finished goods inventory rose to 9 from 7. Assessment of overall order books weakened notably, with the balance falling to -16 from -11. At the same time, manufacturers' views about foreign orders remained unchanged as the index remained at -6. The index for personal production prospects dropped sharply to 10 from 18. The general production prospects index declined less markedly to -6 from -4.

The balances of opinion relating to the evolution of workforce size, both past and future, decreased. The one on the future evolution fell slightly to -2, while the one on the past evolution declined to -6 from -3. The balance of opinions on economic uncertainty felt by business leaders slightly declined. The corresponding index came in at 32, down from 33 in January. The balance of opinion relating to the future trend in selling prices over the next three months increased after three months of stability. The indicator rose to 5 from 2 in the prior month.

The overall business confidence index, which comprises the responses of business leaders from various sectors, including manufacturing, construction, services, retail trade, and wholesale trade, declined to 97 in February from 99 in January. The employment climate index declined marginally to 93 from 94. 02/24/2026 - 04:58:00 (RTTNews)

United Kingdom (U.K.) Retail Sales Fall Sharply in February

British Pounds traded at 1.3533 against USD at 9:00 AM PST

U.K. retailers reported a sharp decline in sales in February due to poor weather conditions. The retail sales balance fell to -43% in February from -17% in January. A net 16% of retailers judged sales for the time of year to be "poor" compared to -15% in January.

Retailers plan to reduce capital expenditure over the next twelve months to a slightly greater degree than in November. The corresponding balance declined to -46% from -42% in November. Retail employment declined at the fastest pace since May 2023. The retail employment balance declined notably to -40% from -19%.

The retail selling prices dropped to 41% from 46% in November. Retailers anticipate the selling price inflation to remain broadly unchanged next month. 02/24/2026 - 06:25:00 (RTTNews)

Japanese Yen (JPY) Falls Amid Ongoing Japan Political Uncertainty

The Japanese yen weakened against other major currencies in the Asian session on Tuesday. Investors are nonetheless concerned about Japan's fiscal health, despite hopes that Japanese Prime Minister Sanae Takaichi will propose additional stimulus to help the economy. In addition, Japan's poor fourth-quarter GDP growth numbers appear to have dampened anticipations of an early rate increase by the Bank of Japan (BoJ), which appears to further depress the value of the yen.

Asian shares traded mixed amid mounting concerns over AI-related disruptions, lingering uncertainty about U.S. President Donald Trump's tariff policies, and escalating tensions between the U.S. and Iran. Following the Supreme Court's decision striking down most of Trump's sweeping global tariffs, Trump said he would be raising worldwide tariffs to the "fully allowed" and "legally tested" 15% level from the 10%.

In the Asian trading today, JPY fell to 4-day lows of 155.31 against the U.S. dollar, from yesterday's closing quotes of 154.64. If the JPY extends its downtrend, it is likely to find support around 158.00 against the USD. 02/24/2026 - 05:00:00 (RTTNews)