US CPI, Less Dovish Draghi Takes EUR/USD......>

FOREX: US CPI, Less Dovish Draghi Takes EUR/USD Above $1.1700.

The improved risk appetite seen through Asia was maintained in early Europe

before gaining an added lift as Turkish central bank raised interest rates more

than expected to 24%, easing pressure in EM's. BOE kept rates/QE unchanged as

widely expected with growth projections broadly on track though with the caveats

of Brexit risk, US/China trade spat. ECB left rates unchanged, also as widely

expected, as markets awaited US CPI and ECB Draghi's press conference. Release

of softer than forecast US inflation data weakened the USD, and with Draghi

sounding less dovish, saw EUR/USD extend gains, eventually making a show to

$1.1701. Cable tracked EUR/USD before gaining its own lift as it spiked above

$1.3100 to $1.3124. EUR/YEN pushed higher on risk appetite which in turn lifted

USD/JPY to an extended high of Y111.96. 

- China IP, Retail Sales; Japan IP, Capacity Utilisation provide early interest

Friday. EU Trade, Labour Costs ahead of US Retail Sales, IP and Capacity

Utilisation also due. 

- ECB Nowotny, BOE Carney and Fed Evans speak Friday.