EUR/USD trims previous gains ahead of the final Eurozone HICP release
- EUR/USD retreated to 1.1615 after failing to extend gains past 1.1640.
- Eurozone HICP is expected to confirm that inflation pressures eased in December
- Investors remain on edge after Trump threatened EU countries with new tariffs.
EUR/USD has trimmed gains in the early European session and is trading around 1.1620 at the time of writing, after rejection at 1.1640. The US Dollar (USD) is trimming some losses amid a strong risk-averse sentiment as the relationship between the US and Europe sours, with the focus shifting to the Eurozone final Harmonised Index of Consumer Prices (HICP).
President Trump jolted markets over the weekend, threatening with 10% additional tariffs on the European countries that oppose the US annexation of Greenland. Europe has responded with the possibility of retaliatory measures amid an unprecedented rift among allies that might cause an existential crisis in the North Atlantic Treaty Organization (NATO).
These events have triggered a risk-off mood in the market and a strained atmosphere ahead of the Davos Economic Forum, where US President Trump and his team will meet representatives from most of the countries targeted by the latest round of levies. Trump's speech on Wednesday is likely to be one of the highlights of the week
In the Eurozone economic calendar on Monday, all eyes are on the final HICP reading for December. The US calendar is empty amid a bank holiday in observance of Martin Luther King Jr. Day, and investors will be attentive to the third quarter's US Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index, both due on Thursday.
Euro Price Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.33% | -0.20% | -0.22% | -0.21% | -0.19% | -0.41% | -0.63% | |
| EUR | 0.33% | 0.13% | 0.11% | 0.12% | 0.14% | -0.09% | -0.30% | |
| GBP | 0.20% | -0.13% | 0.00% | -0.01% | 0.01% | -0.21% | -0.43% | |
| JPY | 0.22% | -0.11% | 0.00% | -0.02% | 0.01% | -0.22% | -0.43% | |
| CAD | 0.21% | -0.12% | 0.01% | 0.02% | 0.03% | -0.19% | -0.42% | |
| AUD | 0.19% | -0.14% | -0.01% | -0.01% | -0.03% | -0.23% | -0.46% | |
| NZD | 0.41% | 0.09% | 0.21% | 0.22% | 0.19% | 0.23% | -0.22% | |
| CHF | 0.63% | 0.30% | 0.43% | 0.43% | 0.42% | 0.46% | 0.22% |
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: Trump's tariffs hurt confidence on the US Dollar
- The US Dollar is the worst-performing major currency on Monday. Investors are selling the Greenback across the board amid renewed concerns about the economic consequences of Trump's uncertain trade policy.
- European leaders have flagged retaliatory measures if the new levies come into effect. The heads of the 27 EU member states will meet in the coming days to decide on measures to take against the US. This is likely to keep investors on edge this week and might trigger sharp fluctuations in Euro (EUR) crosses.
- In the economic calendar on Monday, the only event worth mentioning is the Eurozone HICP figures for December, which are expected to confirm that consumer inflation eased to a 2% year-on-year pace in December, from 2.1% in November, Likewise, the core HICP slowed down to 2.3% in the 12 months to December, from 2.4% in the previous month, according to preliminary estimations.
Technical Analysis: EUR/USD bounces up from the channel's bottom
EUR/USD trades at 1.1620 at the time of writing after bouncing up from trendline support below 1.1600. Technical indicators are bouncing higher, as the Moving Average Convergence Divergence (MACD) line on the 4-hour chart climbs above the Signal line near the zero mark, highlighting a bullish crossover, and the Relative Strength Index (RSI) edges higher, hinting at a gradual build in upside pressure.
The pair, however, has been trading within a descending channel since late December, which keeps the broader bearish trend intact. Immediate resistance is at the 1.1640 area (January 13 low) ahead of the channel's top, now at the 1.1670 area.
On the downside, supports are at the mentioned channel bottom, near 1.1580. Further down, the target is the late-November lows near 1.1560.
(The technical analysis of this story was written with the help of an AI tool.).
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.
Read more.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.
Read more.Next release: Mon Jan 19, 2026 10:00
Frequency: Monthly
Consensus: 2.3%
Previous: 2.3%
Source: Eurostat
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
