USD remains defensive as markets digest CPI data; ETH/USD surges 12%

The forex market shows minimal movement today after yesterday's significant dollar selloff triggered by US CPI data. Major currency pairs are consolidating with changes under 0.1%, as traders digest the implications of a fully priced 25 basis point Fed rate cut for September. The dollar index hovers near 102.40, maintaining yesterday's losses of approximately 0.5%. The standout mover is cryptocurrency, with Ethereum surging above $4,600 to reach four-year highs, representing a 12% gain in the past 24 hours. This crypto rally reflects risk-on sentiment following the softer inflation print. EUR/USD trades sideways near 1.0960, while GBP/USD maintains gains around 1.2780. Asian currencies show mixed performance, with USD/JPY edging higher toward 148.00. Near-term dollar direction depends on upcoming Fed communications and whether officials validate market expectations for September easing.