EUR/USD consolidates losses after soft Eurozone inflation data

By News Room Last updated Jan 7, 2026

EUR/USD is practically flat, trading near 1.1690 at the time of writing, with the bearish bias from December highs intact. Eurozone inflation figures confirmed that price pressures remain weak, which left the pair trading sideways near three-week lows, with investors awaiting the release of key US employment figures.

Data released by Eurostat on Wednesday revealed that the Eurozone Harmonized Index of Consumer Prices (HICP) eased to a 2.0% yearly rate in December, as expected, from 2.1% in November. Likewise, the core HICP slowed down to a 2.3% year-on-year growth, from 2.4% in November, in this case beating expectations of a steady 2.4% reading.

Markets, however, remain calm in spite of the growing geopolitical risks. The US intervention in Venezuela is not triggering major government changes in the country, and US President Donald Trump has announced a $2 billion deal to export Venezuelan Oil to the US.

The main focus today remains on the release of the US JOLTS Job Openings data and the ADP Employment report. These figures will set the tone for Friday’s key US Nonfarm Payrolls (NFP) report, and are expected to shed some light on the US Federal Reserve’s (Fed) monetary policy plans.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the British Pound.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.00%	0.04%	-0.09%	0.04%	0.03%	-0.02%	-0.01%
EUR	-0.01%		0.04%	-0.11%	0.04%	0.02%	-0.03%	-0.02%
GBP	-0.04%	-0.04%		-0.15%	-0.00%	-0.01%	-0.05%	-0.05%
JPY	0.09%	0.11%	0.15%		0.15%	0.14%	0.08%	0.10%
CAD	-0.04%	-0.04%	0.00%	-0.15%		-0.01%	-0.07%	-0.05%
AUD	-0.03%	-0.02%	0.01%	-0.14%	0.00%		-0.05%	-0.03%
NZD	0.02%	0.03%	0.05%	-0.08%	0.07%	0.05%		0.02%
CHF	0.00%	0.02%	0.05%	-0.10%	0.05%	0.03%	-0.02%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Daily Digest Market Movers: Markets calm awaiting key US data

The EUR/USD is moving within a tight range on Wednesday, with investors bidding their time ahead of the release of a string of US employment indicators that might help assess the scope of the Fed’s monetary easing cycle.
Data from Germany released earlier on Wednesday revealed that Retail Sales declined 0.6% in November, following a 0.3% drop in October, against market expectations of a 0.2% gain. Year-on-year, retail consumption grew 1.1% after a 0.9% rise in October.
These figures come after a weaker-than-expected German Harmonized Index of Consumer Prices (HICP), which eased to a 2.0% year-on-year rate in December, from 2.6% in November, below the market consensus of 2.2%.
Furthermore Eurozone’s S&P Services PMI for December was revised down to 52.4 from the previously restimated 52.6 reading, and from 53.6 in November.
In the US, on Wednesday, the ADP Employment report is expected to show a 45,000 increase in net employment in December, which would offset the 32,000 decline seen in November.
Also on Wednesday, the US Bureau of Labor Statistics will release November’s JOLTS Job Openings, which are seen easing to 7.64 million from 7.67 million in October.
Investors will also be attentive to the US ISM Services PMI, which is expected to show a 52.3 reading in December, down from 52.6 in November, still at levels consistent with significant growth.

Technical Analysis: EUR/USD remains in a downtrend from 1.1800

EUR/USD 4-Hour Chart

The EUR/USD is in a bearish correction from late December highs of 1.1808, with support at the 1.1650 area. Technical indicators in the 4-hour chart show a neutral-to-negative bias. The 4-hour Moving Average Convergence Divergence (MACD) histogram bars are moving around the zero level, suggesting a lack of momentum, while the Relative Strength Index (RSI) remains in negative territory at 40.

To the downside, Monday’s low of 1.1659 is closing the path towards the December 8 and 9 lows, in the area of 1.1615. On the other side, upside attempts remain capped below 1.1700 so far. Further up, the descending trendline from December lows, at 1.1735, and Tuesday’s high, at 1.1740, are the next targets.

Economic Indicator

Core Harmonized Index of Consumer Prices (YoY)

The Core Harmonized Index of Consumer Prices (HICP) measures changes in the prices of a representative basket of goods and services in the European Monetary Union. The HICP, – released by Eurostat on a monthly basis, is harmonized because the same methodology is used across all member states and their contribution is weighted. The YoY reading compares prices in the reference month to a year earlier. Core HICP excludes volatile components like food, energy, alcohol, and tobacco. The Core HICP is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.

Economic Indicator

Harmonized Index of Consumer Prices (YoY)

The Harmonized Index of Consumer Prices (HICP) measures changes in the prices of a representative basket of goods and services in the European Monetary Union. The HICP, released by Eurostat on a monthly basis, is harmonized because the same methodology is used across all member states and their contribution is weighted. The YoY reading compares prices in the reference month to a year earlier. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish.