Euro rebounds from soft inflation

Soft inflation numbers from Germany and Spain are falling to the wayside as the euro rebounds above 1.1255.

The driver is the stock market as US equities fall back into negative territory. It's a wonky market today but it's lunchtime in New York at the moment so it's not a good moment to draw any conclusions.

Soft equities are taking the bid out of the US dollar vs EUR, JPY and GBP. EUR/USD traded as low as 1.1194 after the HICP data but it's slowly climbed back as the market ignores risks from the ECB and flows dominate as the quarter winds down.

The main risk is that stocks begin to roll over again. Overall, we've still very close to opening levels in the stock market. You get the sense that if markets started to run one way or another, they'll keep going until the end of the day.