Foreign Exchange Market Update

April 7, 2026

United States Durable Goods Orders Slump 1.4% in February

U.S. manufactured durable goods slumped in February due to largely reflecting a steep drop in aircraft orders, durable goods orders tumbled by 1.4% in February after falling 0.5% in January. In addition, orders for transportation equipment plunged by 5.4% in February after slumping by 1.9% in January.

Orders for non-defense aircraft and parts led the way lower, plummeting by 28.6%, while orders for defense aircraft and parts also tumbled by 3.8%. Excluding the steep drop in orders for transportation equipment, durable goods orders climbed by 0.8% in February after rising by 0.3% in January. There is a 4.9% spike in orders for computers and related products along with notable increases in orders for primary metals and machinery.

Orders for non-defense capital goods excluding aircraft, a key indicator of business spending, climbed by 0.6% in February after falling by 0.4% in January. Shipments in the same category, which is the source data for equipment investment in gross domestic product (GDP), grew by 0.9% in February after coming in unchanged in January. 04/07/2026 - 10:01:00 (RTTNews)

Eurozone Private Sector Growth Hits 9-Month Low

Euro traded at 1.1574 against USD at 9:00 AM PST

The euro area private sector logged its softest expansion in nine months in March amid a renewed fall in new orders and intensifying cost pressures. The final composite output index posted 50.7 in March, down from 51.9 in February. This was the lowest reading since last July.

The service sector was the source of the slower expansion in March. The services Purchasing Managers' Index (PMI) declined to 50.2 from 51.9 in February. This marked the weakest expansion since May last year. The flash reading was 50.1.

Private sector employment was reduced slightly in March, following two months of broadly no change. Further, business optimism dropped for the first time since last December, with the level of positive sentiment at its lowest in almost a year.

Regarding prices, input cost inflation accelerated sharply to its highest in just over three years. In turn, output prices registered the strongest increase since February 2024.

At the national level, economic activity trends were mixed. Spain was the fastest-growing country in March, registering an accelerated upturn. Germany continued to register growth, albeit with its rate of increase slowing to the weakest in the year-to-date. Meanwhile, France and Italy recorded contractions.

Germany's private sector growth weakened to a three-month low in March. The composite output index slid to 51.9 in March from 53.2 in February. The slowdown was entirely due to the service sector, with manufacturing output growth at a 49-month high. The services PMI fell to 50.9 from 53.5 in the prior month. The flash score was 51.2.

Meanwhile, the downturn in the French private sector deepened in March. The composite output index fell to 48.8 from 49.9 in February. The services PMI dropped to 48.8 in March from 49.6 in the previous month. The initial score was 48.3.

Italy's private sector logged its first contraction since start of 2025. Down from 52.1 in February, the composite output index dropped into contraction, posting at 49.2 in March. The decline was led by a renewed fall in services activity, while manufacturing output posted a softer expansion. The services PMI slid to 48.8 from 52.3 in the prior month.

On the other hand, Spain's private sector expanded at a stronger pace in March. The composite output index registered 52.4, up from 51.5 in the previous month. The services PMI improved to 53.3 from 51.9 in February. 04/07/2026 - 08:21:00 (RTTNews)

Japan Household Spending Falls for Third Month

Japan's household spending declined for the third month in February. Household spending dropped 1.8% month-on-month in February, a sharper decline than the 1.0% decrease in January. Spending on food dropped by 0.5%, while expenditure on entertainment grew 10.8%. On a monthly basis, household spending grew 1.5%, in contrast to the 2.5% decline seen in January. 04/07/2026 - 00:44:00 (RTTNews)