USD mixed as CPI data fails to clarify Fed's policy direction

The US Dollar Index showed mixed performance following CPI data that left markets uncertain about the Federal Reserve's policy trajectory amid ongoing tariff concerns. The inflation reading provided little clarity on whether the Fed will maintain its current pause or consider rate adjustments in coming meetings. GBP/USD particularly benefited from dollar uncertainty, with the pound gaining ground as traders reassess relative central bank stances. The ambiguous CPI print has left questions about potential tariff impacts on future inflation unanswered, adding another layer of complexity to Fed decision-making. Market participants remain divided on the Fed's next move, with some expecting extended pause while others anticipate policy shifts if economic conditions change. Technical levels for major USD pairs suggest consolidation as traders await clearer signals. The lack of definitive direction from the CPI data means markets will closely scrutinize upcoming Fed communications and economic indicators for policy clues.