The days of CPI as a major market mover are over.
As I suspected, there was something of a 'sell the fact' trade on the numbers. The headlines were lower than the consensus but the dollar didn't fall, nor did Treasury yields. Instead, they both rose, though modestly.
The move in bonds has stuck but the dollar has been more choppy. On most fronts, the dollar is back to where it was before the data but an exception is USD/JPY, which is 25 pips higher.
USD/JPY 10 mins
