Ahead of the US CPI release.........>

US DATA PREVIEW: Ahead of the US CPI release Deutsche bank note there has been a

very unusual pattern whereby the USD has mostly traded poorly on US CPI days,

whether we get an upside or downside surprises in core CPI. This is particularly

true for USD/JPY that has been down for 11 consecutive CPI release days on the

trot. It would appear that there is some market fear of higher inflation before

the CPI release that dissipates after the release. This time around USD/JPY has

been trading heavy before the release, and has not being responsive to the

long-end of the US curve, with anecdote suggesting inflows into Japanese

equities may be offsetting strong Japan outflows into US fixed income. They add,

if that continues it could well be 12 months on the trot, for a softer USD/JPY

on a CPI day, unless we get a big upside surprise.