Foreign Exchange Market Update

July 30, 2026

United States

U.S. economic growth slowed in the second quarter of 2026, according to a report released by the Commerce Department on Thursday. The report said real gross domestic product (GDP) jumped by 1.5% in the second quarter after surging by 2.1% in the first quarter. The Commerce Department said the slowdown in GDP growth reflected a downturn in government spending and decelerations in investment and exports that were partly offset by an acceleration in consumer spending. Imports, which are a subtraction in the calculation of GDP, also increased more in the second quarter than in the first quarter. 07/30/2026 - 08:46:00 (RTTNews)

A report released by the Commerce Department on Thursday showed a modest pullback in U.S. consumer prices in June. The report said the personal consumption expenditure (PCE) price index slipped by 0.1% in June after climbing by 0.5 in May. The Commerce Department also said the annual rate of growth of the PCE price index slowed from 4.1 in May to 3.7 in June.

The slight monthly pullback in consumer prices reflected a 0.6% decrease in prices for goods, which came as prices for gasoline and other energy goods plummeted by 9.2%. Prices for services ticked up by 0.1%. Excluding food and energy prices, the core PCE price index crept up by 0.1% in June after rising by 0.3% in May. The annual rate of growth of the core PCE price index dipped from 3.4% in May to 3.3% in June.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending. The Commerce Department said personal income rose 0.2% in June after climbing by 0.7% in May. Meanwhile, the report said personal spending increased by 0.3% in June, up from 0.9% in May. With spending rising by slightly more than income, personal saving as a percentage of disposable income edged down from 2.8% in May to 2.7% in June. 7/30/2026 - 11:01:00 (RTTNews)

The Labor Department released a report on Thursday showing a modest rebound in first-time claims for U.S. unemployment benefits in the week ending on July 25th. The report said initial jobless claims rose to 197,000, an increase of 9,000 from the previous week's 188,000. Meanwhile, the Labor Department said the less volatile four-week moving average edged down to 202,750, a decrease of 5,000 from the previous week's average of 207,750.

The report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also dipped by 7,000 to 1.782 million in the week ending on July 18th. The four-week moving average of continuing claims also slipped to 1,797,500, a decrease of 6,000 from the previous week's average of 1,803,500. 07/30/2026 - 10:31:00 (RTTNews)

Eurozone

Euros traded at 1.1519 against USD at 9:00 AM PST

The euro area unemployment rate remained unchanged in June. The jobless rate posted 6.3% in June, the same rate as seen in May and June 2025. The number of people out of work increased by 71,000 from the previous month to 11.13 million. Compared to last year, unemployment increased by 43,000. The youth unemployment rate dropped slightly from 14.9% in May to 14.8%. The unemployment rate in the EU held steady at 6.0% in June. The youth unemployment rate was 15.5%, up from 15.4% in May. 07/30/2026 - 08:21:00 (RTTNews)

Italy's producer price inflation moderated in June to the lowest level in three months. The producer price index climbed 5.8% year-over-year in June, slower than the 7.3% increase in May. Prices have been rising since March. The overall increase was mainly driven by 14.9% higher costs for energy. Prices for intermediate goods increased 4.8%, and those for capital goods rose by 0.2. Costs for consumer goods moved up 1.2%. Monthly, producer prices remained flat in June compared to a 0.2% drop in May. 07/30/2026 - 11:08:00 (RTTNews)

Bank of England Holds Key Rate 

British Pound traded at 1.3450 against USD at 9:00 AM PST

The Bank of England (BoE) maintained its interest rate in a split vote as renewed tensions in the Middle East reignited fears of high inflation becoming persistent. The Monetary Policy Committee (MPC), led by Governor Andrew Bailey, voted 6-3 to hold the bank rate at 3.75%, which is the lowest rate since June 2023. Previously, the central bank had reduced the rate by 25 basis points each in August and November last year.

A majority of MPC members said holding the interest rate steady, combined with the significant tightening of financial conditions that had occurred since the conflict started, was providing sufficient insurance against the upside risks of inflation stemming from fluctuations in energy prices. This time, policymaker Catherine Mann joined peers Megan Greene and Huw Pill in seeking a quarter-point rate hike. The trio felt that a proactive increase in the Bank Rate would reduce the probability of second-round effects setting in.

The BoE announcement came a day after the U.S. Federal Reserve left its interest rate unchanged for the fifth consecutive meeting, and three members voted for a rate hike. 07/30/2026 - 10:10:00 (RTTNews)