Bitcoin 
Ethereum 
Tether 
XRP 
BNB 
USDC 
Solana 
TRON 
Lido Staked Ether 
Figure Heloc 
Prior +2.1%Core CPI +2.3% vs +2.4% y/y expectedPrior +2.4%Headline annual inflation eased slightly to hit the 2% mark with core annual inflation also easing marginally. Still, it’s no time to celebrate just yet and the ECB knows that very well. Services inflation remains the key sticking point, coming in at 3.4% in December. That is slightly better than in November (3.5%) but remains well above what it was from the middle of last year (around 3.2%). On the month itself, services inflation moved up by 0.7%.All of this continues to point towards the narrative that the ECB won’t feel the rush nor the pressure to act any time soon. That especially since the German economy is still flagging in the meantime while waiting for the fiscal kick with inflation pressures still largely persisting in the region’s largest economy.So, carry on as you will as the ECB will be staying on the sidelines for the foreseeable future.EUR/USD holds little changed on the day at 1.1686 with not much appetite among major currencies today. The dollar is pretty much trading flattish across the board as we await the US ADP employment change and ISM services PMI later in the day.
This article was written by Justin Low at investinglive.com.
💡 DMK Insight
Inflation data just dropped, and here’s why it matters: core CPI eased to 2.3%, slightly below expectations of 2.4%. This slight dip in core inflation could influence the ECB’s next moves, especially with services inflation still a concern. Traders should keep an eye on how this data affects the euro and related assets. If the ECB decides to maintain or adjust its monetary policy based on these figures, we could see volatility in forex pairs like EUR/USD. Watch for key levels around 1.05 and 1.07 in the euro, as these could signal shifts in sentiment. But don’t get too complacent; while the headline inflation is at 2%, the underlying pressures from services could keep the ECB on edge. If inflation doesn’t stabilize, we might see a more hawkish stance from the central bank, impacting market dynamics significantly. Keep an eye on upcoming ECB meetings for any hints on policy direction.
📮 Takeaway
Watch the euro around 1.05 and 1.07 as inflation data could lead to significant volatility in the forex market.
