13.01.202613:56:32UTC+00Euro Holds Near One-Month Low

The euro remained steady slightly above $1.165, hovering close to a one-month low reached the previous week, as investors evaluated the latest U.S. inflation data and its potential impact on monetary policy. The U.S. headline Consumer Price Index (CPI) held at 2.7% in December, while the core rate came in slightly below forecasts at 2.6%, supporting the possibility of further Federal Reserve interest rate cuts this year. Concurrently, concerns regarding the Fed’s independence diminished following resistance from several Republican lawmakers against a Justice Department criminal investigation involving Chair Powell. In Europe, European Central Bank (ECB) member François Villeroy de Galhau stated on Tuesday that expectations for an ECB rate hike this year are "fanciful." The ECB maintained its policy rates unchanged in December and raised some growth and inflation forecasts, which reinforced market expectations that rates will remain unchanged for an extended period. Eurostat data released last week indicated that headline inflation slowed to 2.0% in December, aligning with the ECB's target.