If the Fed are looking for inflation they're getting it
The headline was the biggest jump in over four years. The core ticking up again puts it further over the 2% mark. It's all a green light for the Fed and one part of their mandate
USDJPY rose to 113.20 but is quickly back below 113.00 to 112.86
Both GBP and EUR lost around 30+ pips each. Both have recovered a lot of that.
This morning we saw the UK data ignored and now we're seeing the US data get the same treatment. If the market had been scaling down their rate path expectations this was a reason to see some scaling up. The fact we haven't is yet another worry of what's driving markets right now.
As far as inflation goes, if the core rises further ahead of 2% the Fed talk will switch to talking about the main headline number to calm fears of runaway inflation. Spinning at its best
