FX.co ★ Euro Holds Above $1.16 as Investors Digest Key Data

The euro maintained its position above $1.16, marking its strongest performance since mid-November, as investors evaluated various economic reports and their impact on interest rate predictions. Inflation in the Eurozone rose to 2.2% in November, up from 2.1% in October, surpassing market expectations slightly. This increase was driven by higher costs in services and a reduced decline in energy prices. Core inflation remained steady at 2.4%, just under the anticipated 2.5%. Concurrently, the unemployment rate within the bloc rose to 6.4%, narrowly exceeding the forecasted 6.3%. This data, along with the European Central Bank's meeting minutes indicating a lack of urgency among policymakers to reduce rates, resulted in stable market expectations. Investors foresee no changes in policy through to 2026. In the United States, comments from several Federal Reserve officials suggested a dovish stance, fueling speculation of a possible third rate cut in December.