Foreign Exchange Market Update

March 28, 2025

United States (U.S.): Consumer Sentiment Slumps More Than Previously Estimated in March; PCE Price Index Rises in Line with Estimates in February

Consumer sentiment in the U.S. fell by more than estimated in March, according to revised data released by the University of Michigan. The consumer sentiment index was downwardly revised to 57.0 from a preliminary reading of 57.9. Economists expected the index to be unrevised. The consumer sentiment index is down sharply from a reading of 64.7 in February, plunging to its lowest level since hitting 56.7 in November 2022. The steep drop by the headline index largely reflected a substantial deterioration in consumer expectations, as the index of consumer expectations plummeted to 52.6 in March from 64.0 in February and hit its lowest level since July 2022. The report showed a more modest decrease by the current economic conditions index, which fell to 63.8 in March from 65.7 in February. 03/28/2025 - 10:36:00 (RTTNews)

A report released by the Commerce Department showed U.S. consumer prices increased in line with economist estimates in February, although core consumer prices rose by slightly more than expected. The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.3% in February, matching the increase seen in the two previous months as well as economist estimates. The annual growth rate by the PCE price index was 2.5% in February, unchanged from January and in line with expectations.

Meanwhile, the report said the core PCE price index, which excludes food and energy prices, climbed by 0.4% in February after rising by 0.3% in January. Economists expected another 0.3% increase. The annual rate of growth by the core PCE price index also accelerated to 2.8% in February from an upwardly revised 2.7% in January. Economists had expected the year-over-year growth by the core PCE price index to tick up to 2.7% from the 2.6% originally reported for the previous month. The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending. The report said personal income increased by 0.8% in February after climbing by 0.7% in January, while personal spending rose by 0.4% in February after falling by 0.3% in January. 03/28/2025 - 08:45:00 (RTTNews)

Mexico: Jobless Rate Falls To 2.5%

Mexican Peso traded at 20.3955 against USD at 9:00 AM PST.

Mexico's unemployment rate decreased in February after rising the previous month, data from the National Institute of Statistics and Geography, or INEGI, showed. On an unadjusted basis, the jobless rate dropped to 2.5% from 2.7% the previous month. There were 1.524 million unemployed in February. In the corresponding month last year, the jobless rate was also 2.5%. The economic participation rate was 58.7% compared to 60.2% in February 2024. On a seasonally adjusted basis, the jobless rate increased to 2.7% from 2.6% the prior month. 03/28/2025 - 10:59:00 (RTTNews)

Germany: Unemployment Rate Rises in March

German unemployment increased more than expected in March as economic downturn continued to weigh on labor market activity, official data showed Friday. The number of people out of work increased 26,000 to 2.92 million, the Federal Employment Agency reported. Unemployment was expected to climb 10,000 after rising 9,000 in February. The unemployment rate rose to 6.3% in March, while it was expected to remain unchanged at 6.3%. The so-called spring recovery in the labor market begins in March, Andrea Nahles, the head of the Federal Employment Agency said. However, this year, too, the economic downturn is noticeably slowing the recovery, Nahles added. Data from Destatis showed that the jobless rate remained unchanged at 3.5% in February. There were 1.56 million unemployed, up 5,000 or 0.3% from January. On an unadjusted basis, the jobless rate held steady at 3.6% in February. 03/28/2025 - 11:03:00 (RTTNews)