Cautious Markets Eye US Inflation Data as Forex and Commodities React

The forex and commodities markets remained cautious ahead of key US CPI data. EUR/USD rebounded slightly around 1.1050 as a weakening US Dollar and declining Treasury yields supported the pair. Meanwhile, the Japanese yen strengthened against the dollar amid diverging monetary policies between the Bank of Japan and the Federal Reserve. Gold held steady near $2,520 per ounce as traders awaited inflation data that could influence the Fed’s rate cut decision. The British Pound faced pressure due to stalled UK growth, while GBP/USD struggled to sustain gains beyond 1.3100. Silver prices hovered around $28.80, with markets bracing for potential volatility following the US CPI release.