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Foreign Exchange Market Update

Foreign Exchange Market Update

Please call the FX Department at 626-279-3235 for the most current rate.

July 18, 2025

Bar graph shows overnight changes in major currencies around the world.

 

United States (U.S.)

New residential construction in the U.S. rebounded in June, according to a report released by the Commerce Department on Friday. The Commerce Department reported housing starts surged by 4.6% to an annual rate of 1.321 million in June after plunging by 9.7% to 1.263 million in May. The larger rebound in housing came as a spike in multi-family starts more than offset a steep drop in single-family starts. The report said multi-family starts soared by 30.6% to an annual rate of 414,000, while single-family starts dove by 4.6% to an annual rate of 883,000.

Housing starts to rebound to a small degree in June after falling to a five-year low in May. The overall pace of starts was subdued, however, and is keeping with the slow multi-year downtrend in home construction. Additionally, the rebound came on the multifamily side as single-family starts fell further and are now well below the long-run average, indicating builders are adjusting to slower demand and rising costs.

Meanwhile, the Commerce Department said building permits increased by 0.2% to an annual rate of 1.397 million in June after slumping by 2.0% to a revised rate of 1.394 million in May. Building permits, which are an indicator of future housing demand, decreased by 0.2% to an annual rate of 1.390 million from the 1.393 million originally reported for the previous month. The uptick in building permits came as multi-family permits surged by 8.1% to an annual rate of 478,000, more than offsetting a 3.7% plunge in single-family permits to an annual rate of 866,000. 07/18/2025 - 09:43:00 (RTTNews)

 

Eurozone 

Euro traded at 1.1651 against USD at 9:00 AM PST

Germany's producer prices declined for the fourth straight month in June on lower energy prices. The PPI dropped 1.3% year-on-year in June, faster than the 1.2% fall in May. This was the fourth consecutive decrease. Month-on-month, producer prices were up 0.1% in June. Energy prices logged an annual fall of 6.4% in June. Intermediate goods were also less expensive, down 0.4% from the previous year. 

By contrast, durable consumer goods, non-durable consumer goods, and capital goods experienced logged cost increases. Non-durable goods cost surged 3.6% and capital and durable goods prices climbed 1.7% each. Excluding energy prices, producer prices were 1.3% higher than in the same period last year. 07/18/2025 - 02:50:00 (RTTNews)

Italy's construction output decreased in May after recovering the previous month. Construction production fell 1.4% monthly in May, reversing a 2.8% increase in April. Meanwhile, the yearly growth in construction output eased to 3.9% in May from 6.5% a month ago. On an unadjusted basis, construction production rose 0.3% annually in May versus a 4.6% growth in the prior month. 07/18/2025 - 04:17:00 (RTTNews)

 

Japan Inflation Slows in June

Japan's inflation softened in June but continued to remain above the 2% target. Core inflation, which excludes fresh food costs, eased to 3.3% in June from 3.7% in May, which was the highest in two years. Meanwhile, excluding fresh food and fuel, inflation rose marginally to 3.4% from 3.3% the previous month. Despite the slowdown, underlying inflation remained elevated, strengthening calls for further interest rate hikes. The Bank of Japan raised its policy rate by a quarter-point in January to the current 0.5%. The next monetary policy announcement is due on July 31. 07/18/2025 - 02:28:00 (RTTNews)


This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.

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