Crude oil settles at $79.34, up $1.20. Bias remains to the upside from a technical perspectiveFitch affirms Canada at AA+ with a stable outlookTrump told Netanyahu that he should remove his soldiers from LebanonFed's Goolsbee: June CPI inflation data was surprisingly benignTrump: We will be doing a lot of deals with Iraq and taking a lot of oil out.Crude prices move lower after Trump backtracks on his 20% Reimbursement FeeTrump TACOs on the 20% toll in HormuzWarsh Q&A: Inflation is a choice, we will deliver price stabilityRBC bumps up Canadian and US growth forecasts, sees Fed and BoC frozen through 2026The USD is sharply lower after tame CPI inflation. What are the charts telling traders?Prepared Text from Fed Chair Warsh: Fed has no tolerance for persistent elevated inflation.US June CPI 3.5% vs 3.8% expectedThe USD is lower to start the NA session and ahead of the CPI and Warsh testimony.investingLive European FX news wrap: Markets consolidate ahead of the US CPI reportThe June U.S. CPI report came in well below expectations, offering the strongest sign in months that inflation pressures are easing after the spring rebound. Headline CPI slowed to 3.5% year-over-year from 4.2%, below the 3.8% forecast, while prices fell 0.4% on the month versus expectations for a 0.1% decline. Core inflation also surprised to the downside, easing to 2.6% year-over-year from 2.9%, while the monthly core reading was unchanged (0.0%), its softest pace since January 2021.The improvement was broad-based. Energy prices led the decline as gasoline prices tumbled, but underlying inflation also cooled, with shelter posting its smallest monthly increase since January 2021 and core services ex-shelter recording their weakest reading since May 2020. Softer readings in motor vehicle insurance, apparel, used cars, medical care, and lodging added to the encouraging report.The data prompted markets to scale back expectations for additional Fed tightening. The lower CPI sent the US dollar lower and ushered in the testimony on Capitol Hill by Fed Chair Warsh.Warsh delivered a measured but generally hawkish message, reiterating that the Fed's primary mission is to restore price stability and that "higher inflation is not acceptable." While he described the economy, labor market, and financial markets as solid, he emphasized that inflation remains the central challenge and that the Fed has the tools to bring it under control. Warsh avoided signaling the next move on interest rates, saying the FOMC will debate the timing and extent of any future policy actions and remain guided by the incoming data.Warsh also stressed the importance of Fed independence and greater transparency, while noting the central bank is looking beyond any single inflation gauge to better measure underlying price pressures. He added that quantitative easing is not inherently inflationary during periods of crisis and said he remains open-minded about balance-sheet reform.On today's CPI report, Warsh acknowledged that the data came in better than expected, but cautioned that one favorable inflation reading is not enough to change the Fed's outlook. He stressed that policymakers need to see a sustained improvement in inflation before considering any shift in policy, reinforcing that the fight against inflation is not yet over.During the testimony, President Trump announced that he is abandoning the proposed 20% U.S. reimbursement fee on ships transiting the Strait of Hormuz announced less than 24 hour ago, in favor of trade and investment agreements with Gulf States, saying the new approach will generate massive investment, expand factories and manufacturing, and create millions of high-paying American jobs. He credited the U.S. military and senior defense officials for keeping the Strait of Hormuz open to global shipping while maintaining a blockade on vessels traveling to or from Iranian ports or carrying Iranian cargo. Trump said the policy shift followed productive discussions with Middle Eastern leaders and argued that investment partnerships would deliver greater long-term benefits than the proposed fee. He also reiterated his hardline stance on Iran, insisting the country will never be allowed to obtain a nuclear weapon.As the dust settles, the USD is ending the session lower with the risk-on currencies (NZD, AUD, CAD) benefiting the most. The NZD rose by 1.06% vs the greenback, the AUD by 0.81% and the CAD by 0.64%. The CHF also benefitted by 0.63%. The JPY was the smallest gainer with a gain of 0.13%. Both the EUR and the GBP rose by 0.34% vs the USD. The USD yields moved lower helping the dollars decline. The shorter end of the yield curve fell the most with the 2-year yield falling by -7.6 basis points to 4.187%. That move took the yield down from a high of 4.298% earlier in the day - the highest level going back to February 19, but despite the decline, remains comfortably above the Fed target rate of 3.5% to 3.75%. The 10 year yield fell -2.5 basis points to 4.585%. US stocks closed higher led by the Nasdaq index which rose by 233 point or 0.90%. The Nasdaq also closed back above its 200 hour MA after testing the lower 100 hour MA yesterday and finding willing buyers. If the price can stay above the 200 hour MA at 26025, the buyers remain in full control. A move below the 200 hour and 100 hour MA at 25873 would tilt the bias lower. Crude oil prices rose $1.74 to $79.88, but is well off the high price at $81.27. Go prices rose by $52 and move back away from the $4000 level to $4053. Silver rose $1.11 or 1.95% to $58.75. Bitcoin caught a bid rising by $2321 to $64,471 This article was written by Greg Michalowski at investinglive.com.