Headlines:

Markets:

• NZD leads, GBP lags on the day
• European equities lower; S&P 500 futures flat
• US 10-year yields up 3.6 bps to 4.344%
• Gold up 0.3% to $3,028.73
• WTI crude up 0.9% to $69.61
• Bitcoin up 0.2% to $88,053

It was a slower session as markets continue to be caught in the countdown to Trump tariffs next week.

The UK CPI report was the main event on the economic calendar and it turned out to be slightly softer than estimated. The pound fell in the aftermath despite details still arguably potentially offering a headache for the BOE.

Services inflation remains stick at 5.0% and at 3.5%, core annual inflation is still sitting well above the desired 2% level for the time being. While headline annual inflation is seen at 2.8% now, there are concerns that it could pick up in the months ahead as the drag from energy prices dissipates and firms potentially having raise prices when NICS and NLW increases come into effect next month.

Some analysts are even forecasting UK inflation to move towards 4% by the April or May reports. And that is consistent with the BOE forecast of inflation returning to a peak of 3.75% in Q3 this year.

Nonetheless, traders are looking past all of this for now with GBP/USD falling from 1.2940 to 1.2890 and is keeping thereabouts now.

The dollar is mixed across the board as it holds slight gains against the yen and franc while keeping lower against the commodity currencies. EUR/USD remains flat just under the 1.0800 mark.

Looking to broader markets, the risk mood is more tentative even with a bit of a stutter in Europe. Major indices in the region are lower after a more tepid open while US futures are still looking relatively muted ahead of the Wall Street open later.

Coming up, we do have the UK spring budget statement to go through before navigating more Trump tariff headlines surely during the session ahead.