Everyone likes a bit of exaggeration including the FX markets. Dollar has weakened over the past 24 hours as the media reports that Fed officials believe the market may have put too much faith in a series of concurrent rate hikes stateside. Dollar was also not helped by yet another all-time high for the price of crude oil. WTI contracts hit $139.89 as supply concerns worried traders after a fire at a North Sea platform. Euro allowed itself a bit of upside against sterling and dollar yesterday as HICP hit an all-time high since the introduction of the euro. Markets are now pricing in more of a chance of a hike at next month’s meeting as supposed to their typical hold. All the data today is tier 1 and therefore likely to move the markets so we could be in for a fairly choppy day. UK CPI is due at 09.30 and is expected at 3.2%; letter writing territory. We anticipate a fall on the German ZEW economic sentiment reading as well as inflation concerns hamper feeling in Europe’s largest economy.