The initial market reaction has been fairly muted. U.S. stocks are modestly lower, Treasury yields are edging higher, and the USD is firmer, but the overall moves remain relatively limited.

Looking at the equity market, futures are pointing to a softer open, with the Dow down about 150 points, the S&P 500 lower by roughly 11.5 points, and the NASDAQ off around 33 points. Earlier in the pre-market session (around 7:15 AM ET), U.S. equities were actually trading marginally higher before giving back those gains.

In the bond market, Treasury yields are ticking slightly higher, with the 10-year yield up about 0.3 basis points to 4.179%. More broadly, the 10-year has been trading comfortably within a 4.00%–4.25% range, a band that traders appear increasingly comfortable with as they wait for a stronger fundamental catalyst to push yields decisively in one direction. For now, the CPI report has done little to disturb that status quo.

Turning to the major currency pairs, the EURUSD remains under pressure, trading below its 100-hour moving average at 1.15979 after dipping to a session low near 1.1588. If the pair can stay below the 1.1600 level, sellers may keep the pressure on, with the next downside target near 1.1576, followed by stronger support in the 1.1542–1.1554 area.

For the GBPUSD, the 200-day moving average at 1.34413 continues to act as key resistance. The price needs to break and hold above that level to give buyers greater confidence and shift the bias more firmly to the upside. On the downside, the pair is currently trading near 1.3413, still above both the session low and the 100-day moving average at 1.33957. Just below that, the converging 100- and 200-hour moving averages near 1.3386 represent important support. A move below those levels would increase the bearish bias.

The USDJPY is stretching higher and looks toward the high from Monday at 158.89. That level was near a high goign back to January 2025. Get above those levels and the high for the year at 158.447 will be eyed.