EL7.AI
ForexMediumUpdated×2•Originally published 10 July 2026•Updated 12 July 2026•
1 min read

Markets Eye US CPI and Fed Chair Warsh Testimony for Dollar Direction

Man in a suit centered before a US map with flag pattern, surrounded by icons for CPI, dollar, and Fed policy.

Key Facts

1Markets are awaiting the US CPI report and Fed Chair Kevin Warsh's dual testimonies to determine the US Dollar's direction.

Global markets are closely monitoring the upcoming US Consumer Price Index (CPI) report and Federal Reserve Chair Kevin Warsh's dual testimonies, which are expected to dictate the US Dollar's near-term direction. Investors are focusing on Warsh's first testimony to gauge the probability of a September rate hike and determine if inflation is decelerating as expected. The greenback's next move hinges on whether the Fed Chair adopts a hawkish tone regarding future monetary policy.

This anticipation follows mixed economic signals, where the US ISM Non-Manufacturing Prices reached 67.7, slightly exceeding the 67.5 forecast per market data. Meanwhile, Eurozone Retail Sales grew by 0.2%, missing the 0.3% estimate, which has heightened market sensitivity ahead of the US inflation data. These figures underscore the complex environment central bankers must navigate as they balance growth and price stability.

Significant attention remains on the aftermath of the RBNZ interest rate decision, which held at 2.5%, and any further commentary from Fed officials. These events will be critical in shaping sentiment and volatility levels as the market prepares for the final inflation print.