Dollar rebounds strongly in early US session after much stronger than expected CPI inflation reading. The headline reading has indeed been trend up every month since January and showed no sign of slowing yet. Yen also rebounds following the greenback. Meanwhile Sterling and Canadian Dollar are the weakest ones for today for the moment. Technically, focus will now be on near term resistance for the greenback. In particular, levels to watch include 1.1780 support in EUR/USD, 1.3730 support in GBP/USD, 0.7480 support in AUD/USD, and 1.2589 resistance in USD/CAD. Dollar will need to overcome these levels to confirm that it's resuming near term rally. Otherwise, the moves are just seen as another leg inside range patterns. In Europe, at the time of writing, FTSE is up 0.09%. DAX is down -0.01%. CAC is down -0.09%. Germany 10-year yield is down -0.002 at -0.295. Earlier in Asia, Nikkei rose 0.52%. Hong Kong HSI rose 1.63%. China Shanghai SSE rose 0.53%. Singapore Strait Times rose 0.63%. Japan 10-year JGB yield dropped -0.0043 to 0.025. | 