Higher than expected US CPI for the third consecutive month drove US interest rates sharply higher and lifted the greenback broadly. The market appears to be catching its proverbial breath today, but the shallow consolidation suggests the moves are not over.
The large Asia Pacific equity markets were mixed. Europe's Stoxx 600 is off about 0.3% in late morning turnover. US index futures are slightly softer after yesterday's sharp losses.
Gold fell by about $18.75 an ounce yesterday, its largest loss in about a month. It is trading softer today near $2332.
May WTI is little changed, consolidating above $86 a barrel.

Asia Pacific markets
After bumping near JPY152 for three weeks, the surge in US rates after the March CPI lifted the greenback to JPY153.25 yesterday has edged marginally higher today. The dollar has held above JPY152.75.
The New Zealand dollar recorded a key reversal by setting new highs for the move and then selling off and settling below Tuesday's low. Like the Aussie, it steadied today but has been unable to resurface above $0.6000.

European markets
It took the euro six sessions to rise from around $1.0725 to $1.0885. It practically unwound it all yesterday. The 1.1% loss was the largest drop of the year. After the low was set in North America yesterday, the euro was unable to trade above $1.0755. Today's high has been $1.0750.
Sterling was slammed yesterday and spiraled to $1.2520, taking out last week's low around $1.2540 and matching the Q1 low recorded after the January US jobs data on February 8. A fragile consolidative tone has emerged today, and sterling saw new sales near $1.2570.

American markets
The third monthly US CPI reading above expectations lifted US rates sharply and lifted the greenback. The market has all but given up on a June rate cut.
The Bank of Canada took baby step toward a rate cut. While leaving policy on hold at 5.0%, the central bank boosted its GDP forecast while shaving its CPI projections. In its statement, it dropped the reference to the "persistence of core inflation."
The US CPI triggered a sharp sell-off in the Canadian dollar. The US dollar jumped around 0.9%, the most this year, and briefly traded above CAD1.37 for the first time since last November. It has held slightly below it today.