USD volatility expected as incomplete CPI data meets Fed decision

USD pairs face heightened uncertainty as today's US CPI report will be incomplete due to government shutdown, potentially showing only November price levels rather than December data. The limited dataset reduces reliability for traders analyzing monthly inflation trends, with markets expecting moderation despite tariff pressures on core goods being offset by seasonal discounts. DXY index trades near 107.50 ahead of the release, with EUR/USD holding above 1.0200 support. The compromised data quality may limit sustained dollar moves, though initial volatility is likely across major pairs. Technical levels show USD/JPY resistance at 157.00 and GBP/USD support at 1.2650. The incomplete nature of the report complicates Fed policy assessments, potentially reducing the data's typical market impact. Traders should prepare for whipsaw movements in USD pairs but expect any directional moves to be questioned given the data limitations.