July US inflation data matched forecasts, reducing Fed rate hike bets but failing to spark sustained dollar momentum.
The US dollar showed limited movement today as July’s CPI report met expectations, offering little fresh impetus for traders. Inflation data aligned with forecasts, easing concerns about overheating but leaving room for a potential Fed rate hike in September.
EUR/USD remained confined to a 20-pip range, struggling to break above its 100-day moving average despite softer inflation and non-farm payrolls. USD/JPY saw muted follow-through after recent intervention efforts, with traders still favoring a weaker yen amid geopolitical tensions.
Markets are now weighing the Fed’s next move, with September rate expectations still in play despite the lack of a clear directional push from the latest data.