The kneejerk reaction on the CPI report was to buy the US dollar. Now == after careful consideration -- the market reaction is to buy even more US dollars.
USD is at the best levels of the day against the euro, pound and commodity currencies. The only thing capping USD/JPY is the brutal tone in equities as the Nasdaq nears a 5% decline and the S&P 500 hits a session low down 3.7%.
Cable has now broken 1.1500 from a high of 1.1738 earlier. The euro is through parity from a high of 1.0187. The biggest loser in percentage terms in NZD/USD, which is down 2.35% and has just taken out the September low.
NZDUSD daily chart
