Foreign Exchange Market Update

September 10, 2026

United States

Producer prices in the U.S. increased in August, the Labor Department revealed in a report released on Thursday. The Labor Department said its producer price index for final demand rose by 0.4% in August, following a 0.1% uptick in July. The report also said the annual rate of growth in producer prices surged from 4.8% in July to 5.4% in August. The monthly increase in producer prices largely reflected a rebound in energy prices, which spiked by 4.2% in August after tumbling by 1.8% in July.

The Labor Department also said prices for services crept up by 0.1% in August after rising by 0.2% in July, led by a 2.3% surge in prices for transportation and warehousing services. Meanwhile, prices for trade services dipped by 0.2% during the month, and prices for other services were unchanged. The report said core producer prices, which exclude food, energy and trade services, rose by 0.3% in August after climbing by 0.4% in July. The annual rate of growth by core producer prices came in at 4.7% in August, unchanged from the previous month. 09/10/2026 - 10:33:00 (RTTNews)

The Labor Department released a report on Thursday showing a slight dip in first-time claims for U.S. unemployment benefits in the week ended September 5th. The report said initial jobless claims edged down to 206,000, a decrease of 1,000 from the previous week's level of 207,000. The Labor Department said the less volatile four-week moving average also slipped to 206,000, a decrease of 1,500 from the previous week's average of 207,500.

Continuing claims, a reading on the number of people receiving ongoing unemployment benefits, also edged down by 1,000 to 1.774 million in the week ending on August 29th. The four-week moving average of continuing claims dipped to 1,779,000, a decrease of 1,750 from the previous week's average of 1,780,750.

Last Friday, the Labor Department released a report that showed that employment in the U.S. had increased in August. The report said non-farm payroll employment surged by 162,000 jobs in August, up from 21,000 jobs in July. The Labor Department also said the unemployment rate came in at 4.1% in August, unchanged from July. 09/10/2026 - 10:13:00 (RTTNews)

European Central Bank Raises Deposit Rate to 2.50% 

Euro traded at 1.1627 against USD at 9:00 AM PST

The European Central Bank (ECB) raised interest rates on Thursday, prompted by fears of an inflation shock as energy prices surge amid the recent escalation of the Iran war. The ECB Governing Council, led by President Christine Lagarde, hiked the benchmark deposit rate by 25 basis points to 2.50%. The main refinancing rate was raised by a similar amount to 2.65%, and the lending rate was lifted to 2.90%.

Following that, the bank left rates unchanged in the previous policy session in July as policymakers adopted a wait-and-watch mode. However, the recent intensification of tensions in the Middle East has propelled the crude oil price over $100, sparking concerns of an energy price shock as supply disruptions are likely amid the war.

"Today's decision underscores the Governing Council's commitment to setting monetary policy to ensure that inflation stabilizes at its 2% target in the medium term," the bank said. "The outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth," the bank said.  "With today's decision, the Governing Council remains well positioned to navigate the uncertainty caused by the conflict," the ECB said.

The central bank affirmed that it would follow a data-dependent and meeting-by-meeting approach to determining the appropriate policy stance. The Governing Council is not pre-committing to a particular rate path, the bank reiterated. 09/10/2026 - 10:59:00 (RTTNews)