The latest Consumer Price Index (CPI) report from the United States showed a 0.4% month-over-month increase and 3.6% year-over-year, surpassing market forecasts of 0.3% and 3.4%.

The data indicates persistent inflationary pressure, fueling speculation that the Federal Reserve may delay any rate cuts. The forex market reacted quickly, with the US Dollar gaining across the board.

• USD/JPY surged to 148.90, approaching the key 149.00 resistance.

• EUR/USD dropped to 1.0760, its lowest in two weeks.

• The US Dollar Index (DXY) jumped to 104.85, the highest level in a month.

Traders are now waiting for comments from Fed officials for further confirmation on the direction of monetary policy.