Following the January US Consumer Price Index (CPI) surpassing expectations, US bond yields surged, and dollar buying intensified. The year-on-year CPI came in at +3.1%, surpassing the market consensus of +2.9%. Core CPI also exceeded expectations at +3.9% compared to the consensus of +3.7%. The yield on the US 10-year bond rose sharply from the 4.12% level to the 4.28% level. USD/JPY surged from around 149.30 to around 150.30. Meanwhile, EUR/USD sharply declined from the 1.0790 level to the 1.0720 level.
With CPI results exceeding expectations, went long on USD/CHF as planned earlier.
