FX Update: The dollar firmed up some
FX Update: The dollar firmed up some in during the late European AM session, recouping after correcting an overall bullish trend over the last day. EUR-USD pushed toward 1.1300, down from yesterday's 1.1341 high, which was the rebound-high seen yesterday after the pair had printed a three-month low at 1.1257. Cable ebbed a back under 1.2900. USD-JPY continued to trade somewhat out-of-step with broader dollar direction, with the pair printing a fresh seven-week high at 110.76 during the early London session before settling modestly lower. The Japanese currency's inverse correlation with global stock markets has been back in play. The biggest mover has been AUD-JPY, a cross with a relatively high beta characteristic, which gained over 0.6% in making an eight-day high at 78.94. EUR-JPY and other Yen crosses have also been on the ascent. The pound was little affected by a big UK CPI miss before Cable subsequently drifted lower at the urging of broader dollar gains. UK January CPI dove to 1.8% y/y from 2.1% in December, well off the median forecast for 2.0% y/y. Core CPI, however, met expectations in remaining unchanged at 1.9% y/y. The BoE has been expecting headline CPI to temporarily dip under 2.0% before recouping back above this threshold later in the year.