USD Stays Muted Post-CPI as CHF Leads, NZD Lags; Gold Pulls Back

The US dollar remains tentative in post-CPI trading, failing to generate meaningful momentum following the latest US inflation data release. The Swiss franc leads among major currencies while the New Zealand dollar underperforms, reflecting a risk-cautious positioning across forex markets. UK GDP data came in line with expectations at +0.4% q/q for Q2, with June posting unexpected growth driven by a stronger services sector. Spanish inflation edged higher in July, with both headline and core prices increasing. WTI crude oil declined 2% to $81.58, while gold retreated from recent highs after US CPI data failed to provide an additional bullish catalyst. European equities traded higher alongside S&P 500 futures, suggesting modest risk appetite. Market participants are now turning their attention to the upcoming Jackson Hole symposium for further policy guidance from the Federal Reserve. The muted dollar reaction to CPI suggests traders are in a wait-and-see mode, with the Jackson Hole event likely to be the next major driver for USD pairs and broader forex sentiment.