FX.co ★ Euro Holds Gains as Investors Digest Strong Eurozone CPI and US Jobs Data

The euro remained above the $1.13 mark as investors considered stronger-than-anticipated inflation figures from the Eurozone and a robust U.S. non-farm payrolls report. Inflation in the Euro Area held steady at 2.2% for April, slightly exceeding the predicted 2.1%. Services inflation increased to 3.9%, while core inflation, which excludes food and energy, rose to 2.7%, surpassing expectations and leading investors to anticipate 60 basis points in rate cuts by the European Central Bank by year-end. In the United States, non-farm payrolls rose by 177,000 in April, outpacing market forecasts of 130,000, despite growing uncertainty due to President Trump's tariff policies. The strong labor statistics, alongside Wednesday's underwhelming GDP report, may complicate the Federal Reserve's decision on whether to lower interest rates in June. Additionally, market sentiment received a boost amid indications of easing trade tensions between the U.S. and China, with Beijing stating it is "evaluating" recent U.S. proposals for renewed discussions.