The euro had a difficult Friday. Its price against the US dollar went down for the fourth day in a row. It reached 1.1715. This happened at the same time the European Central Bank (ECB) decided not to change its main interest rates. The head of the ECB, Christine Lagarde, also said she would not promise future changes to money policy. The ECB did say it expects better economic growth in 2025 and 2026. However, this news did not calm worries about the economy now.
In the United States, things were different. Inflation slowed down in November to 2.7%. This was good news. But some people were not sure about the numbers. Also, the US jobs report was not as strong as expected. Only 64,000 new jobs were created. The unemployment rate went up to 4.6%. This made the dollar weaker. The DXY Dollar Index fell by 0.35% to 97.91.
In the United Kingdom, the pound sterling became stronger against the dollar. It went up by 0.42%. However, the UK unemployment rate increased. This is the highest it has been since 2021. It suggests jobs might be harder to find. Despite this, business activity is good. Many people expect the Bank of England to lower interest rates soon. They think it will happen on Thursday.
Germany, an important country for the Eurozone, showed some problems. Consumer confidence went down to -26.9 in January. Factory prices did not increase. They even went down over the last year. This could affect how much factories produce. In France, the parliament may not approve the budget on time. This could cause more money problems for the euro.
Cyprus, however, is doing a little better. Its economy grew by 1.8% in November. Good feelings, tourism, and strong sales helped this growth. Electricity production was a small problem. Business confidence stayed about the same. But people are less worried about the economy. This makes the economic outlook for Cyprus cautiously positive.