Dollar Stagnant After Inflation Meets Expectations

American inflation figures for July were in line with expectations, leading to relatively little volatility in markets.

The headline annual inflation rate declined slightly to 3.4%, while core inflation remained steady at 2.8%.

Despite the weak non-farm payrolls (NFP) release last week, the Federal Reserve's hawkish expectations have taken a backseat for now.

The majority of participants on the CME FedWatch expect another hold by the Fed on September 16, with only around 28% anticipating a hold all the way into 2027.