FX.co ★ Euro Rises Helped by Strong Eurozone Inflation Data

The euro climbed above $1.13 on Friday, driven by stronger-than-expected Eurozone inflation data and in anticipation of the forthcoming U.S. non-farm payrolls report. Investors are eager for insights into the Federal Reserve’s future policy direction. The most recent CPI data revealed that Euro Area inflation remained unchanged at 2.2% in April, exceeding the projected 2.1%. Particularly noteworthy was the acceleration in services inflation to 3.9%, along with core inflation—which excludes food and energy—rising to 2.7%, both figures surpassing expectations. In the United States, the upcoming employment report is predicted to indicate a cooling in the hiring pace, with non-farm payrolls anticipated to rise by only 130,000 in April, a significant dip from the 228,000 registered in March. This trend reflects growing uncertainty stemming from President Donald Trump's assertive tariff strategies. Concurrently, market confidence was buoyed by indications of improving U.S.–China trade relations, following Beijing's announcement that it is “evaluating” new U.S. proposals to rekindle trade negotiations.