Cable has been under steady pressure after briefly jumping on a moderation in US consumer prices. The pound touched a high of 1.2818 immediately after the release but has since fallen to 1.2713.
The drop in cable in indicative of market moves elsewhere. Stock initially cheered the CPI data but have grown much more cautious. The dollar is broadly stronger, including against the yen despite the change in the risk trade.
Oil is now at the lows with WTI down $1.10.
The theme following the data is unclear as the bond market isn't doing much of anything. This looks like pure profit taking or some flow-driven moves.
There is a 30-year auction at the top of the hour and we hear from the fed's Harker and Bostic later, though we've heard from both recently so I don't see a big scope for anything surprising.
