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Tariffs and trade negotiations remain key market drivers, but today the focus will shift to US inflation data. As we discussed in yesterday's webinar, inflation is expected to rise slightly from 2.4% to 2.6% YoY. The big question is whether this uptick will be another reason for Powell to holds rates steady for longer, despite pressure from Trump who has been calling for rate cuts in recent months. So today’s CPI release will be critical for the dollar and Treasuries. Looking at the price action on Dollar Index, the move from July 1st still appears corrective, with the 98 to 98.20 zone acting as strong resistance. It’s a potential sweet spot for a sell-off. 

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