September FED Meeting

The U.S. Dollar Index is under pressure as traders reduce expectations for a more hawkish Federal Reserve stance at the next September meeting. EUR/USD and GBP/USD are testing higher levels, while USD/CAD and USD/JPY remain shaped by Canadian inflation data, Japan growth figures and intervention risk.

U.S. inflation matched market expectations in July, with headline CPI rising 3.4% year over year and core CPI cooling to 2.5%. Bitcoin briefly dipped after the release but stabilized near $64,000 as Treasury yields remained under pressure.

Gold is caught between a weaker dollar and a firmer Treasury yield backdrop, leaving traders braced for higher volatility around the Fed message. Rising crude risk after intercepted missiles in the Middle East has complicated the inflation outlook and reduced the room for a clearly dovish turn.