2 months ago
Forex

Euro Stable Despite Disappointing Inflation Data

Investing.com - The euro was slightly higher on Friday, despite lower than expected inflation data. Eurozone consumer prices rose

Investing.com - The euro was slightly higher on Friday, despite lower than expected inflation data.

Eurozone consumer prices rose at a slower-than-expected pace in December, increasing expectations that the European Central Bank will keep interest rates unchanged.

The numbers came just after ECB policymaker Benoit Coeure said that interest rates in the EU are likely to remain at low levels until the target 2% is reached.

"The interest rates we set for the euro zone economy will stay at the current level... until at least after the summer of 2019 and as long as necessary," Coeure said Friday on France Inter radio.

EUR/USD inched up 0.09% to 1.1401 as of 5:40 AM ET (10:40 GMT).

Meanwhile, sterling was higher as the services sector accelerated in December. Still, the economy is losing momentum ahead of the UK’s departure from the European Union.

GBP/USD increased 0.4% to 1.2676.

The Japanese yen weakened but the dollar remained lower amid fears of a global slowdown. Trade talks between the U.S. and China Jan. 7-8 have failed to lift sentiment, as trade tensions continue to rattle financial markets.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slipped 0.08% to 95.80 while USD/JPY rose 0.3% to 107.97.

-Reuters contributed to this report.