Foreign Exchange Market Update

June 30, 2025

Eurozone

Euro traded at 1.1754 against USD at 9:00 AM PST

Germany's consumer price inflation moderated in June to the lowest level in eight months. Consumer price inflation slowed to 2.0% in June from May's stable rate of 2.1%. A similar increase was last seen in October 2024. Further, inflation has now come in line with the European Central Bank’s target.

Core inflation, which excludes prices of food and energy, softened marginally to 2.7% in June from 2.8% a month ago. Service costs registered a slower growth of 3.3% after a 3.4% rise. Similarly, the increase in cost of goods eased to 0.8% from 0.9%. Month-on-month, the consumer price index remained flat in June, following a 0.1% rise in May. Inflation, based on the harmonized index of consumer prices (HICP), also slowed to 2.0% from 2.1%. Monthly, the HICP edged up 0.1%. 06/30/2025 - 09:58:00 (RTTNews)

Italy's consumer price inflation increased slightly in June after easing the previous month. Consumer price inflation rose to 1.7% in June from 1.6% in May. The price growth in unprocessed food accelerated to 4.2% from 3.5%. Similarly, inflation based on transport services rose to 2.9% from 2.6%.

Meanwhile, the price growth in regulated energy products eased from 29.3% to 22.7%. Excluding energy and unprocessed food, core inflation increased to 2.1% from 1.9%. Monthly, consumer prices moved up 0.2%, as expected. Inflation, based on the HICP, climbed to a stable pace of 1.7% annually in June. Monthly, the HICP rose 0.2%. 06/30/2025 - 07:03:00 (RTTNews)

United Kingdom (U.K.) GDP Growth Confirmed at 0.7%

British Pounds traded at 1.3709 against USD at 9:00 AM PST

The U.K. economy expanded at a stronger pace in the first quarter. Real GDP grew 0.7%. This followed a 0.1% expansion in the fourth quarter and marked the fastest growth since the first quarter of 2024.

On the production side, the service sector climbed 0.7% from the prior quarter, while construction output gained only 0.3%. Industrial production advanced more than 1.3%, following falls in the previous three quarters. Within output, manufacturing output grew 1.1%, following a 0.6% drop in the previous quarter. The expenditure side breakdown showed growth was driven by increases in gross fixed capital formation, net trade, and household consumption.

Household spending gained 0.4%, while government spending dropped 0.4%. Gross fixed capital formation showed an increase of 2.0%. Within this, business investment advanced by 3.9%. Yearly, the economy expanded by 1.3% in the first quarter. 06/30/2025 - 05:06:00 (RTTNews)