 Forex markets are trading with a relatively subdued tone as the US session gets underway, with limited broad-based momentum among major currencies. The most notable move is a selloff in the Swiss Franc, which appears largely technical, led by a bullish bounce in EUR/CHF. Meanwhile, Yen is seeing a modest recovery, likely driven by profit-taking after its extended weakness since the start of July. Traders appear reluctant to press shorts further ahead of this weekend’s upper house elections in Japan, which could trigger new fiscal policy shifts and JGB volatility in the days ahead. Dollar is slightly firmer despite today’s softer-than-expected PPI release. Markets are not placing too much emphasis on the inflation miss, as the dominant driver remains the looming August 1 tariff deadline. Until there is clarity on whether new trade deals are reached or further levies imposed, Dollar positioning is likely to stay cautious. Sterling is holding its ground near the top of the G10 board after today's upside surprise in UK inflation. Though the reaction has been modest. Attention now turns to the UK labor market report tomorrow, which could help determine whether August’s rate cut odds remain intact. For the week so far, Dollar leads the major currencies, followed by Loonie and Sterling. At the bottom are Kiwi and Aussie, with Swiss Franc also under pressure. Euro and Yen are treading in the middle....... | 
