Mixed US CPI data sparks volatile forex moves across major pairs

Confusing market reactions followed the latest US CPI release, with major currency pairs experiencing whipsaw price action as traders struggled to interpret the mixed inflation signals. USD/JPY initially spiked to 158.20 before retreating to 157.85, while USD/CAD dropped 0.3% to 1.3640 on the data. The headline CPI came in below expectations at 3.1% year-over-year versus 3.3% forecast, but core inflation remained sticky at 3.4%. EUR/CAD jumped to 1.4780 as the Canadian dollar outperformed on oil price strength. Bond yields displayed erratic behavior, with the 10-year Treasury yield first falling then reversing higher. The Nasdaq 100 futures swung between gains and losses, reflecting uncertainty about the Federal Reserve's reaction to the data. Technical levels across major pairs are being tested, with USD/JPY support at 157.50 and resistance at 158.50. The mixed signals suggest continued volatility ahead as markets await clearer inflation trends.