Foreign Exchange Market Update

April 3, 2026

United States (U.S.) Employment Rebounds Much More in March

The Labor Department released a report on Friday showing that employment in the U.S. surged by a much greater amount in March. The report said non-farm payroll employment shot up by 178,000 jobs in March after plunging by a revised 133,000 jobs in February.

The stronger job growth partly reflected a notable increase in employment in the health care and social assistance sector, which added 89,900 jobs. Employment in the leisure and hospitality, construction, transportation, and warehousing sectors also rose, while federal government employment continued to decline.

The Labor Department also said the unemployment rate edged down to 4.3% in March from 4.4% in February. The dip in the unemployment rate came as the household measure of employment fell by 64,000 people, while the labor force shrank by 396,000 people.

The report also said average hourly employee earnings increased by $0.09 or 0.2% to $37.38 in March. The annual rate of growth by average hourly employee earnings slowed to 3.5% in March from 3.8% in February. 04/03/2026 - 09:49:00 (RTTNews)

French Industrial Output Falls

Euro traded at 1.1525 against USD at 9:00 AM PST

France's industrial production declined in February. Industrial production dropped 0.7% monthly in February, in contrast to the 0.2% rise in January. At the same time, manufacturing output remained flat in February after rising 0.2% in January.

The stability in manufacturing output was due to offsetting effects across the major sectors. Manufacture of food products and beverages, and that of transport equipment, slid 0.8% each.

Meanwhile, the manufacture of other industrial products gained 0.4%, and that of coke and refined petroleum products climbed 1.8%. In mining and quarrying, energy, water supply, and production fell 3.2% after rising 0.3% due to particularly mild temperatures in February. 04/03/2026 - 03:31:00 (RTTNews)

Japan Services Activity Expands

Japan's service sector logged strong growth, but the pace of expansion eased slightly amid a softer upturn in new orders. The headline final services Purchasing Managers' Index (PMI) fell to 53.4 in March from a 21-month high of 53.8 in February.

There were tentative signs that growth momentum was beginning to fade in March, with both the output and new order indices retreating from the recent highs seen in February. New order growth slid to a three-month low, and the rate of job creation was the slowest since last October.

Cost pressures intensified in March as the war in the Middle East pushed up oil prices. Input prices grew the most in nearly a year, while output charge inflation softened since February. The outlook for business activity slipped to the lowest since the pandemic in March due to the uncertainty related to the war in the Middle East. The composite output index posted 53.0 in March, down from a 33-month record of 53.9 in February.

Despite the fall, the rate of expansion was solid and was quicker than the long-run average. Output growth slowed across both manufacturing and services. 04/03/2026 - 02:56:00 (RTTNews)

China Service Sector Growth Eases

China's service sector growth eased sharply in March, but business outlook remained positive, and cost pressures remained moderate. Services Purchasing Managers' Index (PMI) fell to 52.1 in March from a 33-month high of 56.7 in February. A reading above 50.0 indicates expansion in the services sector.

Inflows of new work increased for the thirty-ninth consecutive month and marked the second-longest period of continuous expansion in the survey's history. But the rate of growth was the slowest since April 2025. Still, outstanding workloads continued to rise on the back of strong demand in February. Despite increases in outstanding work and new business, service providers have reduced their staffing levels.

Regarding price pressures, average input prices increased marginally in March. The moderate growth in cost burdens enabled service providers to lower their charges to support sales. Selling prices dropped for the third time in four months.

Service providers remained optimistic regarding expected activity levels over the next twelve months. Confidence was linked to planned business expansions, market developments, new projects, promotions, and new products.

Overall, private sector growth slowed in March from a 33-month high posted in February. The composite output index fell to 51.5 from 55.4 in February. Growth remained broad-based across manufacturing and services. 04/03/2026 - 01:53:00 (RTTNews)