Foreign Exchange Market Update

July 6, 2026

United Service Services Index Indicates Slightly Slower Growth in June

Growth in U.S. service sector activity slowed slightly in June. The services Purchasing Managers' Index (PMI) edged down to 54.0 in June after rising to 54.5 in May, although a reading above 50 still indicates growth.

The slight pullback by the headline index came amid slowdowns in the pace of growth in both business activity and new orders. The business activity index slid from 57.7 in May to 55.4 in June, while the new orders index fell from 57.3 in May to 55.1 in June. Meanwhile, the employment index jumped from 47.9 in May to 51.2 in June, returning to expansion territory for the first time in four months.

The prices index also slumped from 71.3 in May to a four-month low of 67.7 in June, indicating a slowdown in the pace of price growth. U.S. manufacturing activity showed a modest decrease in June. The manufacturing PMI dipped to 53.3 in June after rising to 54.0 in May. 07/06/2026 - 10:49:00 (RTTNews)

Eurozone

Euro traded at 1.1418 against USD at 9:00 AM PST

Germany's factory orders registered an increase in May, raising hopes of a gradual recovery. Factory orders expanded 1.9% monthly in May, in contrast to 3.2% decrease in April.

Excluding large-scale orders, new orders increased 1.0% from the previous month. Foreign orders rose 2.2% in May, with orders from the euro area increasing 11.2%. However, orders from outside the euro area declined 3.2%. Domestic orders advanced 1.3%.

There was a substantial growth in the manufacture of other transport equipment sectors, as orders surged 85.0%. On the other hand, the automotive industry reported a 3.8% fall. In the manufacture of computer, electronic, and optical products, orders decreased 7.8%.

New orders for capital goods were up 2.2%, and those for intermediate goods climbed 1.4%. New orders for consumer goods expanded 2.4%. Yearly, growth in factory orders accelerated from 2.1% in the previous month to 6.2%. Further, manufacturing turnover increased 1.8% from April, when turnover was up only 0.1%. Compared to last year, turnover climbed to 4.2%. 07/06/2026 - 09:33:00 (RTTNews)

Eurozone producer prices rose at a slower pace in May, largely due to the decline in energy prices. Producer prices grew 0.2% month-on-month in May, slower than the 0.7% increase in April. Excluding energy, producer price inflation slowed moderately from 0.9% in the previous month to 0.7%. Energy prices registered the biggest monthly fall of 1.0%. Prices of non-durable consumer goods dropped 0.1%.

All other components of producer prices increased from April. Intermediate goods prices climbed 1.4%, and durable consumer goods prices gained 0.3%. Prices of capital goods moved by 0.2%. Year-on-year, producer price inflation accelerated to 5.9% in May from 5.0% in April. In EU27, producer prices climbed 0.2% from the prior month, pushing up the annual growth to 5.7%. 07/06/2026 - 08:33:00 (RTTNews)

Eurozone retail sales expanded in May, primarily driven by food store sales. Retail sales increased 0.2% monthly in May, following a 0.3% fall in April. The monthly growth was driven by a 0.6% rise in food, drink, and tobacco sales. Non-food product sales grew only 0.1%. Meanwhile, automotive fuel sales in specialized stores decreased 0.5%. Yearly, retail sales growth accelerated from 0.9% in April to 1.6%.

Retail sales in the EU27 rebounded 0.5% on a monthly comparison after falling 0.6% in April. At the same time, annual growth doubled from 0.8% to 1.9%. Among member states for which data are available, the highest annual increases in the total retail trade volume were recorded in Cyprus, Bulgaria, and Luxembourg. Meanwhile, decreases were observed in Romania, Estonia, and Belgium. 07/06/2026 - 08:10:00 (RTTNews)

Singapore Retail Sales Growth Eases To 3.0%

Singapore's retail sales expanded for the fourth month straight in May. Retail sales climbed 3.0% year-on-year in May, though slower than the 5.4% rise in April. Sales of recreational goods alone grew 23.6% annually in May, and those of watches and jewelry were 11.7% higher. Sales at petrol service stations expanded 9.5%, and sales of computer and telecommunications equipment increased 7.7%.

On the other hand, sales at department stores declined 3.3%, and demand for food and alcohol contracted 3.7%. Sales of motor vehicles, parts, and accessories were 0.8% lower. Online retail sales climbed 15.1% annually compared to 14.7% growth in April. Monthly, retail sales decreased 2.3% in May, following a 0.4% increase in April. 07/06/2026 - 03:24:00 (RTTNews)

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