Foreign Exchange Market Update

August 15, 2025

United States (U.S.)

The Labor Department released a report on Friday showing import prices in the U.S. increased in July. The report said import prices climbed by 0.4% in July after a downwardly revised 0.1% dip in June. Compared to the same month a year ago, import prices were down by 0.2% in July, unchanged from June. The stronger monthly import price growth partly reflected a sharp increase in prices for fuel imports, which surged by 2.7% in July after climbing by 0.8% in June. Prices for non-fuel imports rose by 0.3% in July after falling by 0.3% in June, as higher prices for non-fuel industrial supplies and materials, consumer goods, and capital goods more than offset lower prices for automotive vehicles and foods, feeds, and beverages.

Meanwhile, the Labor Department reported that export prices crept up by 0.1% in July, after rising by 0.5% in June. The report also stated that the annual rate of growth in export prices slowed to 2.2% in July from 2.8% in June.

The monthly uptick in export prices came as prices for non-agricultural exports inched up by 0.1% in July following a 0.5% increase in June. Higher prices for automotive vehicles, capital goods, and consumer goods more than offset lower prices for non-agricultural industrial supplies and materials, the Labor Department said. Prices for agricultural exports remained unchanged in July after climbing by 0.8% in June, as higher prices for meat and vegetables offset lower prices for corn and animal feeds. 08/15/2025 - 10:00:00 (RTTNews)

A report released by the Commerce Department on Friday showed retail sales in the U.S. increased in July. The Commerce Department said retail sales climbed by 0.5% in July after jumping by 0.9% in June. The retail sales growth partly reflected a continued surge in sales by motor vehicle and parts dealers, which shot up by 1.6% in July after jumping by 1.4% in June. 

Excluding sales by motor vehicle and parts dealers, retail sales still rose by 0.3% in July after climbing by 0.8% in June. The increase in ex-auto sales also matched expectations. Sales by furniture and home furnishing stores jumped by 1.4%, while sales of department stores, non-store retailers, and sporting goods, hobby, musical instruments, and bookstores also saw notable growth.

Meanwhile, sales by miscellaneous store retailers tumbled by 1.7% and sales by building material and garden equipment and supplies dealers slumped by 1.0%. The report said core retail sales, which exclude automobiles, gasoline, building materials, and food services, increased by 0.5% in July after climbing by an upwardly revised 0.8% in June. 08/15/2025 - 09:27:00 (RTTNews)

Hong Kong GDP Growth Confirmed at 3.1%

Hong Kong's economic growth accelerated slightly in the second quarter. GDP advanced 3.1% year-over-year in the June quarter, slightly faster than the 3.0% growth in the first quarter. On the expenditure side, private consumption expenditure recovered strongly by 1.9% annually in the second quarter. Government consumption expenditure rose 2.5%, while gross fixed capital formation rose by 2.8%. Exports of goods showed a growth of 11.5%, while imports of goods climbed by 12.6%. On a seasonally adjusted quarter-to-quarter basis, real GDP increased by 0.4% versus a 1.8% expansion in the March quarter, as estimated. 08/15/2025 - 08:17:00 (RTTNews)

China Economic Data Disappoints

China's industrial production and retail sales registered weaker growth in July, strengthening calls for further policy support to rebalance the economy towards consumption. Industrial production grew 5.7% in July from a year ago, following June's 6.8% increase. Likewise, retail sales growth eased to 3.7% from 4.8% in June. During the January to July period, fixed asset investment increased 1.6% from the previous year, weaker than the 2.8% rise in the first six months. At the same time, property investment slumped 12%.

In July, the urban unemployment rate rose to 5.2% from 5.0% in June. The second-largest economy expanded 5.2% in the second quarter, underpinned by industrial production and robust exports, due to the frontloading of orders by U.S. manufacturers. Chinese policymakers continue to adopt a flexible and supportive policy stance. With more support measures likely to be announced in the coming months, China will remain on track to reach its target growth in 2025, Song added.

Earlier this year, the U.S. administration imposed 145% tariffs on China, and the latter retaliated with 125% levies on U.S goods. However, after a round of talks held in Geneva in May, the U.S. lowered the tariffs on Chinese goods to 30% and China reduced levies on U.S. imports to 10% for three months. This week, China and the U.S. extended the tariff truce to another 90 days until mid-November. The extension will provide more time for both parties for further negotiations. 08/15/2025 - 04:13:00 (RTTNews)