Dollar Mutes Amid Contained Inflation: Key Currency Ranges Remain Tight

In the current economic landscape, the U.S. dollar is experiencing a peculiar trajectory. Despite the July inflation report (CPI) of the United States staying within expectations, it was not enough to ignite bets on another interest rate hike by the Federal Reserve in September. The dollar faced some pressure but settled into a calm state after the inflation data. Major currencies such as the euro and Japanese yen are trading in tight ranges. EUR/USD is oscillating between 1.085 and 1.087, a narrow interval that appears to be stabilizing after an initial attempt to break through the 100-day moving average (around 1.086). The USD/JPY has returned above the 159.00 level, having halved the losses caused by recent interventions in the Japanese yen. This scenario suggests a delicate balance between economic interests of major countries and the desire to maintain stability at critical levels like moving averages. This may indicate greater caution in dollar movements in the coming weeks.