Eurozone flash headline HICP cools down to 1.7% in January, as expected

The Eurozone's annual Harmonized Index of Consumer Prices (HICP) rose by 1.7% in January, in line with market expectations. This represents a deceleration from December's 1.9% increase. The data indicates a cooling in inflationary pressures, providing some relief for the EUR as traders digest the figures. The subdued inflation is likely to influence future European Central Bank (ECB) policy decisions, keeping the euro under pressure against the USD.

EUR/USD saw modest movement following the release, holding steady near technical support levels. The lack of a stronger inflationary surge reduces the likelihood of aggressive ECB tightening, potentially weighing on the euro's strength in the near term. With the January figure meeting expectations, market participants will now look to upcoming economic data for further clues on the euro's trajectory.

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Data Source: FX Killer Analysis Team Updated: 2026-02-04 10:38

Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.