Euro Slides to December Low Ahead of US Data

2026-01-09 09:28 By Joana Ferreira 1 min. read

The euro slid to $1.164 on Friday, marking its weakest level since December 9, as investors focused on the US December nonfarm payrolls report due later in the day and a potential US Supreme Court ruling on President Trump’s use of emergency powers to impose tariffs.

Recent US economic indicators have pointed to a resilient labor market, and confirmation from today’s jobs data would further reduce the likelihood of near-term interest rate cuts by the Federal Reserve.

In contrast, easing inflation pressures in the euro area have dampened expectations of any policy tightening by the European Central Bank.

According to Eurostat, eurozone consumer price inflation slowed to a four-month low of 2% in December, returning to the ECB’s midpoint target.

Core inflation also eased to 2.3%, slightly below market forecasts of 2.4%.

Price growth across the region’s largest economies either softened or remained broadly stable.



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