USD flows: USD softer on as expected CPI

US CPI came in as expected at 0.3% for both headline and core, but the index was slightly on the high side of expectations, and unrounded the monthly gain was 0.312%. Even so, this is probably low enough to allow the Fed to cut rates 25bps on December 18. Front end US yields and the USD are lower in the data, with a December cut now priced as a 95% chance (from 85% yesterday). The USD looks a little too high here relative to yield spreads, particularly against the JPY after the sharp USD/JPY rise this morning in Europe following the reports of more dovish comments from BoJ officials.