Markets sold off overnight after much-stronger-than-expected CPI data was published in the US. Inflation came in at 0.8%, while core inflation soared to 0.9% (vs 0.2% and 0.3% respectively). This big beat sent US stocks into free-fall while investors piled into the USD.

The EURUSD opened the day at $1.21475 and began to decline early, before bumping up to a high of $1.21516 heading into late-session trading. The euro fell sharply from there however, hitting a low of $1.20648 an hour later. It has come off those lows slightly and is now trading at $1.20806. The GBPUSD started the day at $1.41406 and followed a similar path to the euro, lifting to a high of $1.41521 heading into late trading. The pound tumbled to lows of $1.40478 in the final hour of the session and is now trading at $1.40713.

The Dow began the day at 34,243.50 and ticked up to a high of 34,331.82 early. It remained steady up until the release of the inflation data, where it subsequently sold-off and hit a low of 33,560.65 late. It has come off those lows and is now trading at 33,721.30. The Dax managed a much steadier session, opening and closing rather flat. Opening at 15,126.74, it fell to lows of 14,993.54 early before bouncing back and climbing to a late high of 15,227.61. It has come off those highs and is now trading at 15,118.20.

Data published today includes:

Japan – Economy Watchers Sentiment

Canada – BoC Governor Tiff Macklem speaks

UK – BoE Governor Andrew Bailey and MPC Member Jon Cunliffe speak

US – Unemployment Claims, PPI & Core PPI, Natural Gas Storage, FOMC Members Thomas Barkin and Christopher Waller speak

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