The EUR/USD pair stabilizes following a decline.
The primary currency pair regained stability on Thursday after a recent downturn, with the current EUR/USD exchange rate at 1.0893.
Yesterday's release of statistics prompted the market to reassess its outlook.
In December, final inflation in the eurozone surged to 2.9% year-on-year, a notable acceleration from the preceding 2.4%. While the data aligned with expectations, it failed to alleviate market concerns—raising the possibility of a renewed uptrend in prices.
In the United States, industrial production saw a modest increase of 0.1% month-on-month in December, following no changes in November. Annually, the indicator rose by 1.0%. The capacity utilization rate in the US for December remained at 78.6%, unchanged from November.
Retail sales volume expanded by 0.6% month-on-month in December, surpassing the anticipated 0.4%. On a year-on-year basis, retail sales increased by 5.6%.
A crucial development is the strengthening pro-inflationary signal, hinting at potential future price acceleration. Consumers appear to be managing well under high interest rates, having adapted and maintained robust spending habits.
It appears that the Federal Reserve will need to approach any decisions regarding lending cost reductions with careful consideration.