Foreign Exchange Market Update

July 31, 2026

United States

Consumer sentiment in the U.S. improved in July. The consumer sentiment index for July was 55.2, a decrease from a preliminary reading of 54.4. The index is still well above the June reading of 49.5 and the record low of 44.8 in May. The current economic conditions index surged from 47.7 in June to 54.8 in July. 07/31/2026 - 10:31:00 (RTTNews)

Chicago-area business activity increased at a slightly faster rate in July. Chicago business barometer rose from 56.7 in June to 57.6 in July, with a reading above 50 indicating growth. The uptick by the headline index largely reflected stronger new orders, as the new orders index spiked by 11.6 points. Meanwhile, supplier deliveries pulled back by 9.5 points, unwinding June's strong rise. The order backlogs index also slid by 5.2 points, reentering contraction territory after two months above the neutral 50 mark.

The employment index also fell by 3.8 points, remaining in contraction territory for the fifth month straight and hitting its lowest level since March. The production index also eased by 1.4 points but remained in expansion territory for the seventh consecutive month. On the inflation front, the prices paid index edged down by 0.1 points, continuing to cite geopolitical factors and elevated energy costs as pricing pressures. 07/31/2026 - 10:04:00 (RTTNews)

Eurozone

Euros traded at 1.1509 against USD at 9:00 AM PST

Eurozone inflation increased in July on energy and services costs. Inflation edged up from 2.8% in June to 2.9% in July. Core inflation that excludes energy, food, alcohol and tobacco rose from 2.4% in the previous month to 2.5%. Monthly, the harmonized index of consumer prices (HICP) climbed 0.2% in July. Among components of HICP, energy posted the biggest annual increase of 10.0%. This was followed by a 3.3% rise in services. Food, alcohol, and tobacco prices rose 1.2%, and non-energy industrial goods prices grew 0.9%. 07/31/2026 - 05:50:00 (RTTNews)

Consumer price inflation in Italy moderated further in July to the lowest level in three months, primarily due to rising prices for unprocessed food and unregulated energy products. Consumer price inflation slowed from 3.0% in June to 2.8% in July. The annual price growth in unprocessed food eased from 4.4% to 3.8%, and that in non-regulated energy products softened from 13.3% to 10.6%. On the other hand, inflation based on regulated energy products accelerated from 9.2% to 14.9%, and transport-related services inflation rose from 1.1% to 1.6%. Excluding energy and unprocessed food, core inflation remained stable at 1.6%. Monthly, consumer prices moved up 0.2%. The EU measure of inflation was 2.9% in July, down from 3.0% in June. Monthly, the HICP decreased 1.0%. 07/31/2026 - 07:59:00 (RTTNews)

Confidence among Italian households remained less pessimistic in July, and business confidence also showed some resilience. Consumer sentiment rose to a 5-month high of 94.2 in July from 92.4 in the previous month. Nonetheless, a score below 100 indicates a pessimistic outlook. Among components, both the economic and future sentiment improved from 87.6 to 90.9 and from 87.4 to 89.8, respectively. Similarly, the personal climate index improved from 94.2 to 95.4, and the current conditions index increased from 98.0 to 96.2.

The composite business confidence indicator rose from 95.3 a month ago to 95.6 in July. Confidence among manufacturers improved, and the corresponding indicator increased from 88.6 to 89.6 as assessments of orders and expectations for the production level are improving amid inventory buildup. Confidence in the market services improved from 97.2 to 98.1 amid a positive trend in assessments regarding both the level of orders and business performance. Meanwhile, the morale for the construction sector dropped from 101.6 to 96.8. 07/31/2026 - 05:53:00 (RTTNews)

Germany's unemployment increased in July. The unemployment rate rose from 6.3% in June to 6.4% in July. The number of unemployed people increased by 6,000 from June, when it was down 1,000. Unemployment rose to 2.99 million in July. Unemployment and underemployment increased noticeably in July, primarily due to seasonal factors. Overall, the weak trend in the labor market of recent months continued.

The unemployment rate rose from 3.8% in May to 3.9% in June. The number of unemployed rose 6,000 to 1.70 million in June. The recent Germany's private sector returned to expansion territory in July, with firms maintaining a preference for lower workforce numbers. The rate of job losses eased in July to show the softest reduction in employment since December last year. 07/31/2026 - 08:50:00 (RTTNews)

Taiwan GDP Growth Eases to 12.92% in Q2

Taiwan's economy logged a strong expansion in the second quarter, though the pace of growth eased from the previous quarter. Gross domestic product (GDP) advanced 12.92% year-on-year in the June quarter, slower than the 14.55% increase in the March quarter. On the expenditure side, private final consumption grew by 5.88% over the year, and government final consumption rose by 3.22%. Gross capital formation was 15.14% higher as investments in machinery equipment, intellectual property products, and construction increased.

Net foreign demand was also favorable, as exports surged 21.64% amid sustained strong external demand for artificial intelligence and related evolving applications. There was an 18.27% growth in imports. Quarterly, GDP rose a seasonally adjusted 2.39% versus a 1.69% rise in the March quarter. 07/31/2026 - 09:34:00 (RTTNews)