CPI Report Puts Dollar in Focus as Market Seeks Clues on Fed Policy
The upcoming US Consumer Price Index (CPI) report is set to release later this week, and market analysts are closely watching for any sign that price pressures are cooling.
A soft CPI print could open the door for a move toward the 103.00 handle in the dollar index (DXY), while a strong reading may prompt the Federal Reserve to keep rates higher for longer, supporting the greenback.
The euro-dollar pair is particularly sensitive to the CPI release, with EUR/USD potentially pushing above 1.0800 if the dollar weakens or testing support at 1.0700 if it strengthens.