US Dollar Braces for Crucial Inflation Data. Forecast as of 12.08.2026

Does the slowdown in CPI mark the beginning of a sustained disinflationary trend, or is it merely temporary? Judging by developments in the Middle East, investors appear to favor the latter scenario. If so, the EUR/USD rally may not last long. Let's take a closer look and develop a trading plan.Major Takeaways US inflation is expected to slow. The conflict in the Middle East continues to escalate. The US dollar is likely to regain ground. A failed test of 1.1565 could provide a reason to sell th