As initial reactions to higher than expected headline and core CPI readings, Dollar is trying to resume its near term advance, which stocks futures are paring gains. The question is how sustainable the rally could be. Euro was rather indifferent to hawkish comments from ECB officials, who continued to talk up the chance of a July ECB hike. So far, Dollar, Yen and Euro are still the strongest ones for the week. Commodity currencies are the worst performers. The trend will likely continue for a while after US inflation data. Still, Dollar traders will need to make up their mind on whether to bid the greenback up against Euro and Yen. Technically, the levels to watch remain 1.0470 support in EUR/USD and 131.34 resistance in USD/JPY. In Europe, at the time of writing, FTSE is up 0.28%. DAX is up 0.34%. CAC is up 0.91%. Germany 10-year yield is up 0.077 at 1.083. Earlier in Asia, Nikkei rose 0.18%. Hong Kong HSI rose 0.97%. China Shanghai SSE rose 0.75%. Singapore Strait Times rose 0.75%. Japan 10-year JGB yield rose 0.0004 to 0.248. | 