EUR/USD Remains At Four-Week Lows After Eurozone Inflation Data, Awaiting Non-Farm Payrolls

• The euro did not react to inflation data in the eurozone.
• The US Employment Report comes with the Non-Farm Payrolls.
• Inflation confirms the slowdown, and the US employment report is coming.
• EUR/USD is under downward pressure at a four-week low

the EUR/USD The decline extended and fell to 1.0496, the lowest level since December 8th. The pair returned above 1.0500 and remained close to that level after the inflation data in the Eurozone.

The pair is moving with a bearish slope. If it holds below 1.0500, the next stable support can be seen at 1.0445. On the rise, at 1.0540 makes the first impression Endurance Then it is followed by 1.0590.

Inflation is low, but core inflation is not

the Consumer price index in the eurozone It rose to an annualized rate of 9.2% in December, down from 10.1% in November, below the market consensus of 9.7%. The preliminary report showed that the core index rose by 0.6% in the month, compared to an expected decrease of 0.1% and rose by 5.2% from last year, which is a record level.

The decline in inflation was expected after the data in several countries, including Germany, which did not generate much surprise. The primary indicator on its part is an alarm signal that is still in the red area and that you press on European Central Bank.

A different report showed that the Retail sales in the eurozone It rose 0.8% in December, beating expectations of a 0.5% increase.

The Euro continued with some strength in the market after the data, holding onto gains against the Swiss Franc and the Pound. EUR/USD did not react much and settled near 1.0500, where it is trading.

The focus is now on The official US employment report (NFP). The market consensus is for an increase in non-farm payrolls by 200,000 and the unemployment rate to remain at 6.7%. The dollar’s strength to the event follows recent economic reports, including ADP employment which beat expectations on Thursday.

technical levels