Euro Falls Below $1.05

The Euro retreated to below $1.05 on Friday, after a hotter-than-expected jobs report for the US lowered expectations the Fed will sharply slow its tightening campaign, sending the USD higher.

Nonfarm payrolls came way above forecasts and wage growth unexpectedly picked up.

In Europe, it is still unclear what the ECB will do in the next meeting.

The latest inflation report for the Eurozone showed that annual inflation slowed to 10% in November, while the core CPI stood unchanged at 5%.

Despite some early evidence that inflation is slowing among developed economies, it remains still uncomfortable high for policymakers and many continue to set a hawkish tone.

The ECB remains committed to raising interest rates to tame price growth, while analysts stay divided on whether the central bank will hike borrowing costs by a 75bps for the third time when it meets in December or will opt for a smaller 50bps increase.