The euro rose above $1.13 on Friday after stronger-than-expected Eurozone inflation data and ahead of the U.S. non-farm payrolls report, as investors looked for clues on the Federal Reserve’s policy outlook.
The latest CPI figures showed Euro Area inflation held steady at 2.2% in April, slightly above the expected 2.1%.
Notably, services inflation accelerated to 3.9%, and core inflation—which excludes food and energy—rose to 2.7%, also surpassing forecasts.
In the U.S., the upcoming jobs report is expected to show a slowdown in hiring, with non-farm payrolls likely increasing by just 130,000 in April, down sharply from 228,000 in March, amid rising uncertainty linked to President Donald Trump’s aggressive tariff stance.
Meanwhile, market sentiment was lifted by signs of a potential thaw in U.S.–China trade tensions, after Beijing said it is “evaluating” recent U.S. proposals for renewed negotiations.
