The euro slipped against a mixed dollar on Friday after slightly hotter-than-expected U.S. CPI boosted expectations of a Fed rate hike next week to a near certainty.

Headline CPI increased 0.4% in August, matching the median estimate, while the core reading rose an above-forecast 0.3%, its largest increase since April. Annual readings of 3.4% and 2.4%, respectively, remain above the Fed target of 2%.

Markets odds of a Fed hike next week jumped to 90% from about 70% on Thursday.

U.S. consumer sentiment weakened in early September as higher gasoline prices and trade tensions fueled inflation concerns.

WTI oil held near $100/bbl as Iran planned a regional meeting to discuss commercial shipping routes, while Houthi militants advanced in Yemen.

EIA said Saudi Arabia's crude supply fell to its lowest level in more than three decades in August.

As an energy summit approaches, the White House is considering using the Defense Production Act to boost U.S. refining capacity.

ECB President Christine Lagarde said the central bank will remain data-dependent, while chief economist Philip Lane warned that energy prices could hit consumption this autumn.

On the eve of a BRICs summit, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin agreed to deepen India-Russia ties.

DXY edged up and the volatility curve steepened with one-month DYX implieds slipping to 5.48% as bearish risk reversals eased.

EUR/USD eased amid Fed tightening expectations though failed to move out of its September range near 1.16 as bearish momentum faded.

EUR/CHF rose to its highest level since April 2025, with Swiss National Bank Chairman Martin Schlegel warning that higher energy prices are boosting hike expectations outside Switzerland.

GBP/USD remained rangebound despite firmer Fed hike odds as resilient UK data keeps sterling underpinned above its 1.3475 September low, with nearby resistance around 1.3550.

USD/JPY slid after failing to hold CPI-driven gains, though momentum eased near its 153.30 100-week moving average as U.S. shares and yields advanced, leaving resistance in place near 154.60 and the 155 pivot level.

AUD/USD rebounded from a CPI-driven drop to 0.7150 and recovered to 0.7187; a move back above the 21-DMA keeps the bias bullish, with support at 0.7150 and resistance at 0.7187.

Treasury yields were up as much as 8 basis points as the curve flattened. The 2s-10s curve fell about 4 basis points to +32.6bp, lowest since July.

The S&P 500 rose nearly 1%, fueled by tech and consumer shares.

WTI oil slid 2.2%, pulling back from a near 4-month high above $100/bbl.

Gold gained 1.1% on broadly higher precious metal prices while copper was flat.

Heading toward the close: EUR/USD -0.16%, USD/JPY -0.44%, GBP/USD +0.07%, AUD/USD +0.19%, DXY +0.10%, EUR/JPY -0.61%, GBP/JPY -0.38%, AUD/JPY -0.24%.(Editing by Burton Frierson Robert Fullem is a Reuters market analyst. The views expressed are his own)