US CPI inflation was hot, rising from 2.7% to 2.9%, but crucially in line with expectations. This was enough to trigger a rally in equities, while bond yields and the US Dollar tumbled. The EUR jumped to 1.1740, despite the ECB holding rates steady, while the GBP spiked to 1.3570. US equities soared, despite the tepid readout, as market anticipation builds for Fed rate cuts.The weaker reserve allowed the AUD to jump to 0.6650, while the NZD broke above 0.5950. German inflation data will be released later today, and this is expected to see a slight rise, another reason for the ECB hold.
