EUR/USD, DXY flows: Some relief that CPI avoids upside shocks
'Relief' as core inflation avoids upside surprise and acceleration
US CPI avoids any shock effect with the headline coming in on-consensus at 4.2%y/y and core most importantly at 0.2%m/m vs mkt 0.3% if in line with market at 2.9%y/y.
Some 'relief' then for USTs, risk assets, and majors vs the dollar that not an upside surprise and that the core rate avoids acceleration.
Dollar comes off a bit, backing off its highs for the session after the last Trump Iran remarks and with DXY for instance retracing back to the 99.85~ recent base on the intraday charts.
In terms of the Fed, it does help perhaps at the margin to temper any further drift hawkish from the Fed at the next meeting and may play to immediate breathing room - though all that said, on all measures, the current trend is still above target and amid what is at least a closed output gap backdrop.