US Markets Brace for Inflation Surge as Oil Prices Drive CPI Forecasts to 3.3%

Global markets remain focused on US inflation data with headline CPI forecasts at 3.3%, even as oil prices face pressure following a ceasefire announcement. Investor attention has now expanded to the upcoming FOMC meeting minutes, triggering a technical corrective phase and profit-taking for the US Dollar. This shift resulted in a pullback for the USD/CAD pair from its recent highs, alongside the USD/JPY retreat from the 160.00 resistance level. Meanwhile, Gold (XAU/USD) continues to struggle with technical hurdles as the market awaits Thursday's Core PCE report for further Federal Reserve (Fed) policy clues. These developments highlight a broader USD correction as traders weigh the 'higher for longer' outlook against shifting geopolitical and energy dynamics.