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Not much noise coming up to this even, but decided to put in a straddle trade with the following details: –

Spot 1.2701, Stop if Offered 1.2680, Stop if Bid 1.2720 with corresponding 20bps SLs.

CPI came out strong, PPI weaker, HPI, higher, so what we can deduce is that inflationary pressures are coming from asset appreciation and consumption.

Consumption ok, but asset appreciatio by way of high real estate prices is not healthy, more importantly, it gives BOE the ammunition to raise interest rates to stop the real estate market from over-bubbling.

I withdrew the straddle trade.

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