Foreign Exchange Market Update

January 16, 2026

United States (U.S.) Industrial Production Climbs 0.4% in December

Industrial production in the U.S. grew in December, according to a report released by the Federal Reserve on Friday. The Fed reported that industrial production rose by 0.4% in December, matching the increase seen in November.

The larger increase in industrial production partly reflected a surge in utilities’ output, which rose by 2.6% in December after dipping by 0.3% in November. Manufacturing output also rose by 0.2% in December after climbing by 0.3% in November, while mining output slid by 0.7% in December after jumping by 1.7% in November. The Fed also said capacity utilization in the industrial sector increased to 76.3% in December from 76.1% in November.

Capacity utilization in the utilities sector rose to 72.3%, while capacity utilization in the manufacturing sector remained unchanged at 75.6%, and capacity utilization in the mining sector dipped to 85.7%. 01/16/2026 - 10:14:00 (RTTNews)

Eurozone

Euro traded at 1.1602 against USD at 9:00 AM PST

Consumer price inflation in Italy rose in December from a 13-month low in the previous month. Consumer price inflation inched higher to 1.2% in December from 1.1% in November. The annual price growth in transport-related services accelerated to 2.6% from 0.9%.  Similarly, inflation based on unprocessed food rose to 2.3% from 1.1%.

On the other hand, costs for regulated energy products deepened to 5.2% from 3.2%, and inflation based on non-durable goods slowed to 0.6% from 1.0%. Excluding energy and unprocessed food, core inflation held steady at 1.7%. Monthly, consumer prices edged up 0.2% in December. In 2025, the average annual rate of change of consumer prices was 1.5% versus 1.0% in 2024.

Inflation, based on the HICP, also rose slightly to 1.2% in December from 1.1% in the previous month. Monthly, the HICP increased 0.2%.  01/16/2026 - 05:41:00 (RTTNews)

Germany's harmonized inflation eased to the 2% target towards the end of the year. The HICP rose 2.0% yearly in December, following a 2.6% increase in the previous month.

Likewise, consumer price inflation weakened to 1.8% from 2.3% in each of the previous two months. The latest inflation rate was the slowest since September. Excluding food and energy, core inflation weakened to 2.4% from 2.7% a month ago.

Monthly, the HICP climbed 0.2%, and the CPI remained flat in December. In 2025, CPI inflation averaged 2.2%, the same rate as seen in 2024 and weaker than the 5.9% posted in 2023. Core inflation softened to 2.8% in 2025 from 3.0% in 2024. 01/16/2026 - 02:37:00 (RTTNews)