Foreign Exchange Market Update

June 3, 2026

United States

A report released by the Commerce Department on Wednesday showed a substantial increase in new orders for U.S. manufactured goods in April. The Commerce Department said factory orders soared by 4.8% in April after jumping by 1.8% in March. The spike in factory orders came amid a sharp increase in orders for durable goods, which shot up by 8.0%. Orders for transportation equipment led the way higher, skyrocketing by 21.6%.

The Commerce Department said orders for non-durable goods also jumped by 1.4% during the month. The report also said shipments of manufactured goods increased by 1.0% in April, while inventories of manufactured goods rose by 0.3%. With shipments jumping by more than inventories, the inventories-to-shipments ratio edged down from 1.51 in March to 1.50 in April. 06/03/2026 - 11:10:00 (RTTNews)

U.S. service sector activity increased in May. The services Purchasing Managers' Index (PMI) rose from 53.6 in April to 54.5 in May, with a reading above 50 indicating growth. The increase in the headline index partly reflected an acceleration in the pace of growth in new orders, as the new orders index jumped from 53.5 in April to 57.3 in May.

The business activity index also climbed from 55.9 in April to 57.7 in May, reaching its second-highest reading since achieving the same reading in October 2024. Meanwhile, the employment index edged down from 48.0 in April to 47.9 in May, dipping to its second-lowest reading since September 2025. The prices index crept up from 70.7 in April to 71.3 in May, reaching its highest reading since hitting 72.6 in August 2022.

Manufacturing activity in the U.S. expanded for the fifth consecutive month in May. The manufacturing PMI rose from 52.7 in April to 54.0 in May, with a reading above 50 indicating growth. With the increase, the manufacturing PMI reached its highest level since hitting 55.9 in May 2022. 06/03/2026 - 10:50:00 (RTTNews)

Private sector employment in the U.S. jumped slightly in May. Private employment rose by 122,000 jobs in May after increasing by 105,000 jobs in April. Eight out of ten super sectors saw job growth last month, with notable increases seen in the education and health services and trade, transportation, and utilities sectors. Small businesses added 49,000 jobs, large businesses added 40,000 jobs, and mid-sized businesses added 10,000 jobs. 06/03/2026 - 10:26:00 (RTTNews)

Eurozone

Euro traded at 1.1606 against USD at 9:00 AM PST

Eurozone producer price inflation accelerated in April on surging energy prices. The producer price index posted an annual increase of 4.9% in April, following March's 2.0% rise. Excluding energy, producer prices rose 2.3% compared to the 1.4% increase in the prior month.

Energy prices posted the biggest increase of 12.3%. Intermediate goods prices gained 3.9%, and durable consumer goods prices moved up 2.7%. Prices of capital goods rose 2.1%, while non-durable consumer goods prices fell 0.2%. Month-on-month, growth in producer prices softened from 3.4% to 0.6% due to a 0.4% drop in energy prices. 06/03/2026 - 06:20:00 (RTTNews)

The euro area private sector logged back-to-back contractions in May, marking their biggest fall in 18 months. The final composite output index dropped from 48.8 in April to 48.5 in May. A score below the threshold of 50.0 indicates contraction.

Overall activity levels in the private sector were pulled lower by services, as manufacturing production rose further. The services Purchasing Managers' Index (PMI) posted 47.7, slightly up from 47.6 a month ago. The flash reading was 46.4.

Price pressures intensified due to the conflict in the Middle East. Input cost pressures remained the sharpest seen since late 2022, and output price inflation quickened. Total new business declined for the third month straight. New business received from abroad was a more pronounced drag on sales activity. The rate of job shedding was the biggest in five-and-a-half years.

There was a modest recovery of business confidence that improved from April's recent low. The private sector downturn was again driven by the two largest economies of the bloc - Germany and France. Meanwhile, Spain and Italy registered expansions in private sector activity.

Germany's private sector shrank for the second month straight in May. The final composite output index climbed from 48.4 to 48.8 in the previous month. The flash reading was 48.6. The services PMI registered 48.1, up from 46.9 in April and the initial score of 47.8.

France's private sector logged its steepest fall since January 2024. The final composite PMI fell to a 28-month low of 44.9 from 47.6 in the previous month but remained above the initial score of 43.5. The services PMI fell to 44.3 in May from 46.5 in April. The headline measure posted its lowest reading in five-and-a-half years. The flash services PMI score was 42.9.

Italy's private sector expanded moderately in May. At 50.4, the composite output index was down from 50.5 in April. There was a steeper fall in services activity, while manufacturing output reported faster growth. The services PMI dropped from 49.8 in the prior month to 49.4 in May.

Spain's private sector returned to growth in May. The composite index posted 50.2 compared to 48.7 a month ago. The services PMI advanced from 47.9 in April to 50.1. 06/03/2026 - 06:10:00 (RTTNews)

Australia GDP Growth Slows in Q1

Australia's economic growth eased in the first quarter as rising interest rates curbed consumer spending, while cyclones disrupted mining operations and exports. Gross domestic product (GDP) grew 0.3% quarterly, slower than the 0.9% expansion seen in the fourth quarter. Similar slower growth was last seen in the first quarter of 2025. Yearly, economic growth came in at 2.5%, the same rate as seen a quarter ago.

The expenditure side of GDP showed that household spending climbed 0.5%, contributing 0.3% points to GDP growth. Government final consumption expenditure fell 0.2%, the lowest quarterly growth since the September quarter of 2022.

Private business investment rose 6.0%, driven by a 16.3% rise in machinery and equipment. Meanwhile, net trade detracted 0.8% points from GDP growth due to the 1.1% fall in exports and the 2.1% rise in imports. At the same time, changes in inventories did not contribute to GDP growth. The household saving to income ratio fell from 7.0% in the December quarter to 6.2%. 06/03/2026 - 01:35:00 (RTTNews)