Themes

· General mood is “risk off”

· Very quiet session in Asia after U.S. inflation hits a 40-year high overnight

· Tonight sees U.S. PPI and Initial Claims numbers

What’s Moving

Very quiet session in Asia today after the USD weakness overnight on the 40-year high U.S. inflation data. This saw most of the majors consolidate overnight moves within very tight ranges in our session. The only exception being Sterling, which rose slightly higher amid light volumes.

The European session is expected to remain quiet with little slated on the economic calendar.

The US session should see some short covering on USD shorts after the overnight weakness, although eyes will be firmly on the U.S. data slated for release tonight.

Data tonight sees:

· U.S. PPI (E: +0.4%)

· U.S. Initial Claims (E: 199k)

· Fed member Brainard is also slated to speak.