Foreign Exchange Market Update

March 26, 2026

United States

The U.S. dollar strengthened against other major currencies in the European session on Thursday, as investor sentiment slashed amid uncertainty lingered on the status of Middle East peace talks. U.S. dollar remained near recent highs on inflation fears and hawkish Fed bets.

Against the euro and the pound, the U.S dollar advanced to 3-day highs of 1.1553 and 1.3348 from early lows of 1.1572 and 1.3368. Against the yen and the Swiss franc, the U.S. dollar climbed to 3-day highs of 159.54 and 0.7928 from early lows of 159.33 and 0.7913. Against the Australia and the New Zealand dollars, the U.S. dollar jumped to 3-day highs of 0.6932 and 0.5973 from early lows of 0.6957 and 0.5809 03/26/2026 - 08:27:00 (RTTNews)

A report released by the Labor Department on Thursday showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended March 21st. The initial jobless claims rose to 210,000, an increase of 5,000 from the previous week's 205,000. Jobless complaints bounced back slightly after hitting their lowest level in almost two months in the previous week.

The report said the less volatile four-week moving average edged down to 210,500, a decrease of 250 from the previous week's 210,750. The Labor Department also said continuing claims fell by 32,000 to 1.819 million in the week ended March 14th.

With the decrease, continuing claims dropped to their lowest level since hitting 1.804 million in the week ended May 25, 2024. The four-week moving average of continuing claims also slipped by 2,000 to 1.847 million, falling to the lowest level since the week ended October 5, 2024. 03/26/2026 - 10:08:00 (RTTNews)

Eurozone

Euro traded at 1.1534 against USD at 9:00 AM PST

Spain's economy grew at a faster pace in the fourth quarter of 2025, underpinned by domestic demand. The gross domestic product (GDP) increased 0.8%, faster than the 0.6% expansion seen in the third quarter. At the same time, annual GDP growth increased to 2.7% from 2.6%. The same 2.7% growth was reported in the third quarter.

Domestic demand contributed 0.9% points to quarterly growth, while external demand contributed negative 0.1% points. Household consumption moved up 0.9% and government spending gained 0.2%. Gross fixed capital formation rose 1.9%. Exports of goods showed a quarterly growth of 0.8% and imports posted 1.2% increase in the fourth quarter. 03/26/2026 - 04:53:00 (RTTNews)

French manufacturing sentiment weakened to a four-month low in March largely due to lower past production and order book levels. The manufacturing confidence index fell to 99 in March from 102 in February. This was the lowest since November.

The balances of opinion associated with the level of order books both global and foreign, decreased again. The one relating to foreign order books plunged to -14 from -8 and the one on global orders slid to -19 from -17.

The balance of opinions on economic uncertainty felt by business leaders declined to 31 from 32. The indicator for personal production expectations fell to 8 from 10 and that for general production outlook slid to -9 from -6. 03/26/2026 - 07:08:00 (RTTNews)

Hong Kong Trade Gap Widens in February

Hong Kong's trade deficit increased notably in February from a year ago as imports grew faster than exports. The trade shortfall rose to HK$64.2 billion in February from HK$36.3 billion in the same month last year. In January, the trade balance showed a deficit of HK$14.1 billion.

Exports climbed 24.7% year-on-year in February, and imports surged by 29.9%. A visible trade deficit of HK$64.2 billion, equivalent to 13.6% of the value of imports of goods, was recorded in February 2026.

Exports to Mainland China were 21.9% higher compared to last year. Total outflows to Asia expanded 23.4%. Within this, exports to Malaysia grew the most by 121.9%, followed by Singapore with a 69.8% rise.

Apart from destinations in Asia, shipments to Switzerland and the Netherlands increased by 78.9% and 68.3%. Meanwhile, imports from the United Kingdom jumped by 230.6%, and those from India surged by 130.8%. 03/26/2026 - 05:08:00 (RTTNews)