Foreign Exchange Market Update

March 5, 2026

United States

Labor productivity increased by 1.9% in the fourth quarter, a decline from the 4.9% rise reported in the previous quarter. This increase in productivity, which measures output per hour, was accompanied by a 2.6% surge in output and a slight 0.2% rise in hours worked. The report also noted that unit labor costs rose by 2.8% in the fourth quarter after falling by 1.8% in the third quarter.

Unit labor costs experienced a significant rebound, increasing by 2.1% compared to a 1.9% decrease reported in the prior quarter. This increase in unit labor costs came as hourly compensation surged by 5.7% in the fourth quarter, effectively outpacing the productivity gains. Real hourly compensation, which adjusts for changes in consumer prices, increased by 3.1% during the quarter. (03/05/2026 - 10:38:00, RTTNews)

A day before the release of the more closely monitored monthly jobs report, the Labor Department published a report showing that initial claims for U.S. unemployment benefits remained unchanged for the week ending February 28. Initial jobless claims totaled 213,000, the same as the previous week.

Revised figures showed that jobless claims slightly increased to 215,000 from the initially reported 212,000 for the prior week. The report indicated that the less volatile four-week moving average decreased to 215,750, down by 4,750 from the previous week's average of 220,500. Additionally, the Labor Department reported that continuing claims, which reflect the number of people receiving ongoing unemployment assistance, rose by 46,000, reaching 1.868 million for the week ending February. (03/05/2026 - 09:57:00, RTTNews)

Eurozone

Euro traded at 1.1569 against USD at 9:00 AM PST

Eurozone retail sales declined in January, primarily due to falling sales in non-food items and automotive fuel. Retail sales dropped by 0.1% month-on-month, marking the first decrease in five months, following a 0.2% increase in December.

Sales of non-food products decreased by 0.2%, while automotive fuel sales fell by 1.1%. In contrast, sales of food, drinks, and tobacco rose by 0.3%. Year-on-year, retail sales growth accelerated to 2.0%, up from 1.8% in December. In the EU27, retail sales increased by 0.1% from the previous month and rose by 2.3% compared to the previous year. (03/05/2026 - 07:16:00, RTTNews)

France's industrial production showed a rebound in January, driven by a significant recovery in transport equipment output. Industrial production expanded by 0.5% month-on-month, offsetting a 0.5% decrease in December. Similarly, manufacturing output grew by 0.6% in January after a decline of 0.7% in December.

Within the manufacturing sector, production of transport equipment experienced a strong rebound of 9.9%. However, the manufacturing of food products and beverages fell by 0.8%, and production of coke and refined petroleum products decreased by 3.4%. Additionally, output of machinery and equipment goods dropped by 0.5%, while other manufacturing declined by 0.9%. (03/05/2026 - 03:10:00, RTTNews)