Foreign Exchange Market Update

January 6, 2026

French Inflation at 7-Month Low

Euro traded at 1.1689 against USD at 9:00 AM PST

France's inflation eased to a seven-month low in December largely due to a more pronounced decline in energy prices. The CPI logged an annual increase of 0.8%, following November's 0.9% rise. This was the slowest rate since May.

EU harmonized inflation also slowed in December, to 0.7% from 0.8% in November. Energy prices declined sharply by 6.8% after a 4.6% drop, but food inflation advanced to 1.7% from 1.4%.

Manufactured products posted a slower fall of 0.4% compared to November's 0.6% decrease. At the same time, services inflation remained unchanged at 2.2%. Monthly, both the CPI and the HICP edged up 0.1% each, reversing the previous month's 0.2% drop. 01/06/2026 - 05:18:00 (RTTNews)

United Kingdom (U.K.) Shop Price Inflation Accelerates

British Pounds traded at 1.3499 against USD at 9:00 AM PST

U.K. shop price inflation accelerated in December, driven by a higher increase in food prices. The shop price index posted an annual growth of 0.7% in December, following an increase of 0.6% in November. This was in line with the three-month average of 0.7%. Non-food prices dropped 0.6% from the previous year, the same rate of decline as seen in November.

In contrast, food inflation advanced to 3.3% from 3.0% in November. Fresh food inflation rose to 3.8% from 3.6% a month ago. Retailers will continue to do all they can to keep prices down this year.  01/06/2026 - 00:38:00 (RTTNews)