US dollar chops after CPI report

<p>US Treasury yields are modestly lower after the CPI report and the dollar is slightly softer. Two-year yield are down to 5.01% from 5.04% ahead of the data while the dollar is generally softer, including against the euro. As you can see though, it's been choppy and the moves are small.</p><p>Core inflation at +0.3% was hotter than +0.2% m/m expected but the unrounded number of +0.278% was closer and the y/y reading was in-line. There was some angst creeping into the market on rising oil prices and that's come out after the data, with the numbers only fractionally higher than anticipated.</p><p>Look for bonds to remain in the drivers' seat from there and stocks to have a say as well. S&amp;P 500 futures are up 1 point ahead of the open.</p>

This article was written by Adam Button at www.forexlive.com.