Euro Slips Against Dollar as Mixed US Data Clouds Fed Rate Path

The euro's value against the US dollar slipped on Friday after the release of mixed US Personal Consumption Expenditures (PCE) price index data, which left investors uncertain about the Federal Reserve's next policy move.

The PCE price index, the Fed's preferred measure of inflation, showed that headline inflation rose 2.4% year-over-year in January, slightly above the previous month's 2.3%, while core PCE, which excludes food and energy, increased 2.6% annually, in line with expectations.

However, personal spending growth slowed to 0.2% from a revised 0.7% in December, suggesting that consumer demand is cooling, which complicates the Fed's tightening stance.