The euro rose to $1.0422, supported by stronger-than-expected inflation data in the Euro Area.
Euro climbs further after inflation data
Annual inflation accelerated to 2.4% in December, its highest level since July, up from 2.2% in November, aligning with market expectations. This marked the third consecutive monthly increase, bolstering the view that the European Central Bank will take a cautious approach to cutting interest rates.
Germany inflation impact
Higher-than-expected inflation in Germany and Spain reinforced this sentiment, even as France and Italy reported softer inflation figures. Meanwhile, market focus remained on President-elect Trump’s tariff plans, as he dismissed claims that his administration might adopt more moderate trade measures.
