The CPI figure came in much higher that its expectations and its previous 0.6% in May, coming in at 1.1%,  this increased the chances of a rate hike in the near future as it confirmed inflation was becoming a problem in the US. June Industrial production and also increase in capacity came in better than expected. Bernanke, the FED chief spoke again last night in more detail in from the last two days but the FOMC minutes were looked over. Due out today for the US are the Housing starts data expected to be lower from .975 to .960, Jobless claims are expected to be at 380k from its previous surprise drop of 346k and most importantly the Philly Fed expected to be better at -15 from its previous -17.1. 

The Euro across the board due to the large sell offs of oil and gold. There was continued weakening of the Euro which suggested that there will be little decoupling from the US problems, this was backed up by the June CPI figure year on year coming in at 4.0%.  

Sterling released mixed data yesterday as June Claimant Count came in at 15.5K from its expected 10K which was the fastest rate in 15 years, however average earnings rose by 3.8% in May, which saw sterling come back past the $2 mark against the USD. There is no data out from the UK today.

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