We were expecting a little more volatility in the FX markets today, with the data releases offering a little more perspective on interest rate policy.
In the US, the CPI numbers were as expected, with the core y/y rate easing back a touch to 2.1% from 2.2%. Headline m/m was a touch higher, but the recovery in oil price accounted for this.
The USD response was pretty muted as a result, with mixed fortunes seen across the board.
Cable came off the highs through 1.4500 after UK inflation was softer than expected, but even here we saw the downside losing momentum in the lower half of the 1.4400s.
EUR/GBP gains look tentative at best, with the overnight moves based on the ORB/Telegraph poll showing the remains way out in the lead cancelled out by TNS later in the day.
AUD/USD gains after a less dovish RBA minutes ran out of steam well ahead of .7400, trading back in the low .7300s before levelling out again.
NZD did pretty much the same below .6800, with the Fonterra auctions in line with the futures market indications as WMP rose 3%.
USD/JPY gains through 109.50 petered out ahead of 110.00 as stocks turned sour again; limited impact seen on the CHF but marginally higher vs both the CHF and CHF on the day.
USD/CAD looks intent on 1.3000, aided by oil prices coming off their highs. That said, both WTI and Brent hit a fresh cycle peak, but CAD has benefitted little in relative terms since the strong recovery from sub 1.2500.
Focus turns to the FOMC minutes Wednesday evening.