Foreign Exchange Market Update

March 25, 2026

United States Import Prices Jump 1.3% in February

Partly reflecting a rebound in prices for fuel imports, the Labor Department released a report on Wednesday showing U.S. import prices increased in February. The Labor Department said import prices jumped by 1.3% in February after climbing to 0.6% in January, reflecting the largest annual increase in a year.

The monthly increase in import prices came as prices for fuel imports spiked by 3.8% in February after slumping by 1.2% in January. Prices for fuel imports saw the biggest jump since April 2024 amid higher prices for petroleum and natural gas. The Labor Department said prices for non-fuel imports also shot up by 1.1% in February after advancing by 0.8% in January.

The sharp increase reflected higher prices for capital goods, non-fuel industrial supplies and materials, consumer goods excluding automotives, foods, feeds, and beverages, and automotive vehicles, parts, and engines.

The report said export prices also surged by 1.5% in February following an increase of 0.6% in January. Export prices in February were up by 3.5% compared to the same month a year ago, reflecting an acceleration from 2.6% annual growth in January. Prices for agricultural exports climbed by 0.7% in February after rising by 0.2% in January. Prices for non- agricultural exports also jumped by 1.7% in February following a 0.7% increase in the previous month. 03/25/2026 - 10:08:00 (RTTNews)

Eurozone

Euro traded at 1.1576 against USD at 9:00 AM PST

German business confidence declined to a 13-month low in March as the war in the Middle East weighed. The business climate index fell to 86.4 in March from 88.4 in February, which was the lowest since February 2025.

In manufacturing, business confidence deteriorated in March, following increases in recent months. Companies assessed their current situation less favorably. Energy-intensive industries were most affected.

Business confidence in the service sector also worsened notably in March. In the trade sector, business confidence worsened due to a significantly more pessimistic outlook and fears of rising inflation.

Business sentiment in the construction sector also declined more sharply than at any time since March 2022. However, the current situation was assessed more favorably. 03/25/2026 - 06:59:00 (RTTNews)

Spain's producer prices declined at the fastest pace since early 2024 due to the fall in energy prices in February. Producer prices fell 7.0% year-on-year in February, following January's 2.8% decrease. This was the biggest fall since March 2024.

The annual decline was driven by the 22.3% fall in energy prices. Prices of capital and consumer goods grew 2.0% and 1.1%. Intermediate goods prices rose only 0.1%. Month-on-month, producer prices dropped 3.1%, in contrast to the 0.5% increase in January. 03/25/2026 - 06:05:00 (RTTNews)

United Kingdom Inflation Remains Stable at 3.0%

British Pound traded at 1.3380 against USD at 9:00 AM PST

UK consumer price inflation (CPI) remained stable in February, but potential spikes in inflation may prompt the Bank of England to keep the interest rates on hold for an extended period. Consumer prices logged a steady growth of 3.0% in February.

Core inflation that excludes energy, food, alcohol, and tobacco rose to 3.2% from 3.1% in the prior month. The annual growth in goods prices was unchanged at 1.6%, while services inflation eased slightly to 4.3% from 4.4%.

The bar for hiking interest rates is relatively high, given weak domestic activity and a cooling labor market. However, it cannot be ruled out if the situation in the Middle East deteriorates significantly further.

Input prices climbed 0.5% year-on-year in February, in contrast to the 0.4% fall in January. In comparison, input prices rose at a faster pace of 0.8%, following a 0.3% in January. Meanwhile, output price inflation eased to 1.7% from 2.5% in January. Month-on-month, output prices slid 0.5 after remaining flat in January. 03/25/2026 - 08:13:00 (RTTNews)