The euro was bid following a rise in Eurozone core CPI. EUR-USD logged new intraday highs above 1.0980, driven in part by a strong bid in EUR-JPY, which gained some 80 pips since the London market open. The euro's bid was sparked by a jump in core Eurozone CPI to 1.0% y/y in July data, up from 0.8% y/y, which offset a benign headline HICP rate of 0.2% and an unexpected dip in German retail sales. USD-JPY re-established itself above 124.00 after dipping to a 123.90 low during Tokyo trade. BoJ sources cited by Reuters, meanwhile, said that a weak yen is beneficial for the economy, and that the central bank is happy with a declining currency, so long as the pace remains moderate. Japan's CPI report, meanwhile, showed very modest June core growth alongside a surprise drop in Tokyo core CPI during July.

[EUR, USD]
EUR-USD has logged new intraday highs above 1.0980, driven in part by a strong bid in EUR-JPY, which is up some 80 pips since the London market open. The euro's bid was sparked by a jump in core Eurozone CPI to 1.0% y/y in July data, up from 0.8% y/y, which offset a benign headline HICP rate of 0.2% and an unexpected dip in German retail sales. EUR-USD's high from yesterday is at 1.0989, while a large option expiry with a strike at 1.1000 is up at today's New York cut. Just below here, the 1.0984-96 area encompasses the convergence of the 20- and 100-day moving averages.

[GBP, USD]
Cable has settled to a narrow consolidation around 1.5600, moderately higher on the week. UK data this week have been mixed, with a jump in Q2 GDP to +0.7% q/q from Q1's 0.4% and new cycle highs in mortgage lending offset by unexpected weakness in the CBI industrial trends and retail surveys, and the biggest drop in lending to non-financial businesses. since records starte