Key Points:

US CPI beat at 0.6 m/m from 0.3 m/m expected

10 year yields higher

Gold closes up on the day at $1915

Oil up almost $1 to $42.57

EUR/JPY rallies over 100 pips on the day with better risk mood

The beat in US CPI was the big news on a fairly uneventful day driving back end rates up slightly and driving USD/JPY to retest 107.00. The Nasdaq was the key performer on the US indices up over 2% as investors drove Tesla higher by another 13% whilst the DJ and S&P500 both put in gains over 1% and finish up 8 of the last 9 days. Precious metals remained in the news although the US session was rather subdued in comparison to earlier in the day where we saw Gold drop from 1930 to 1862 and bounce almost $100 to 1950 during the European session. It closed in New York around 1915. From a technical point of view Gold found good buying strength at the trendline support of 1860 and a close back above 1960/65 could indicate another run higher again. Likewise Silver had a similar trajectory. UK GDP data beat expectations but the jobs report showed signs of strain causing Cable to fall back to 1.30 before bouncing. The commodity bloc currencies remained supported on the day with a stronger Oil price buoying the CAD. AUD dipped to 0.7110 during the Gold sell off but regained 0.7170 before dipping back to 0.7150 unchanged on the day. EUR/USD pushed higher post Gold sell off but the US session spent most of the day around 1.1780/1.1800 with a spike to 1.1817 and a dip back to 1.1770 to shake out some intra day positioning. The focus in Asia today will be the Australian employment report with a wild range quoted by analysts as parts of the country remain locked down and others are living a sense of normality. Later in the US session we get the weekly jobless claims report which could cause a shift in risk appetite.

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