#CurrencyPairPrediction Forecasting Currency Reactions to Inflation Surprises in Different Economies centers on predicting how exchange rates will move when actual inflation data deviates from market expectations. Inflation is a critical factor influencing monetary policy and currency valuation. A higher-than-expected inflation reading might lead to expectations of interest rate hikes, potentially strengthening the currency. Conversely, lower-than-anticipated inflation could weaken the currency due to anticipated looser monetary policy. This research involves analyzing the historical sensitivity of different currency pairs to inflation surprises in their respective economies, considering factors like central bank credibility, the magnitude of the surprise, and the overall global economic environment. The goal is to develop models that can accurately predict the direction and extent of currency movements following inflation data releases.