USD Weakens as CPI Comes in Lower; Crude Oil Rallies to $79.34

The US dollar faced broad selling pressure during Monday's Americas session as lower-than-expected CPI data fueled risk-on sentiment across markets. Crude oil settled at $79.34, gaining $1.20 on the session, providing a tailwind for commodity-linked currencies. Fed Chair Warsh's testimony on Capitol Hill struck a cautious tone despite the softer inflation print, suggesting the Federal Reserve remains data-dependent and is not ready to signal imminent rate cuts. The combination of easing inflation pressures and persistent central bank caution created a mixed backdrop for USD pairs. Equity markets responded positively, with the NASDAQ climbing approximately 204 points (0.80%) and the S&P 500 advancing 0.37%, reflecting improved risk appetite. For forex traders, the softer CPI reading could weigh on the dollar in the near term if subsequent data confirms a disinflationary trend. Key focus shifts to upcoming Fed commentary and next economic releases for further directional cues on USD positioning.