The euro climbed to $1.042, driven by unexpectedly high inflation numbers from the Eurozone. December saw inflation rise to 2.4%, the highest since July, and a slight increase from November’s 2.2%. However, the price failed to surpass the $1.045 resistance.
This matched what analysts had predicted and marked a third month of rising prices. These numbers suggest that the European Central Bank might be slow to reduce interest rates.
Consequently, the EUR/USD currency pair resumed its bearish trend, trading at approximately $1.034 in today’s trading session.
ECB May Delay Rate Cuts as Prices Rise
Inflation rates were notably high in Germany and Spain, which supports this view. However, France and Italy saw lower inflation rates.
At the same time, attention is on the upcoming U.S. administration, as President-elect Trump hints at strict trade policies, dismissing ideas that he might soften his stance on trade.