investingLive European FX news wrap: Markets consolidate as US CPI looms

European FX markets traded quietly as investors consolidated positions ahead of the US CPI release. The article says the yen barely reacted to a Nikkei report that the Bank of Japan is set to raise its short-term policy rate to 1% next week and pause bond tapering from next fiscal year, because the hike was already priced in and the tapering pause softened the hawkish signal. Risk assets were bid, the US dollar weakened, and oil extended losses after the prior day’s Israel-Iran ceasefire. Trump also said there were “very good chances” of an Iran deal within days, though the piece argues a swift agreement looks unlikely. Overall tone is range-bound and cautious, with traders waiting for CPI to determine whether Fed tightening fears intensify or ease.