The US dollar has shown resilience ahead of the Consumer Price Index (CPI) report, with recent data indicating a rise in its value. In contrast, the Chinese yuan has weakened amid discussions in China about potentially allowing further depreciation of its currency. This situation has raised concerns about a possible 'race to the bottom' in foreign exchange rates. The euro has also experienced a decline against the dollar, particularly following the European Central Bank's (ECB) recent rate cut. Trump trade adviser Peter Navarro has issued warnings regarding currency manipulation as China contemplates a weaker yuan, which could have significant implications for global trade dynamics.