GBP hit by surprise inflation drop.

Yesterday's data from the UK showed inflation dropping more than expected. This is good news for the residents of the UK. But it brings into question the future path of interest rates, and whether cuts will come sooner than planned, which has weakened the GBP. And showcases how the 'race to cut' will have an effect on the currencies moving forward.

In other news, a sell off in 'risk assets' yesterday caused my trade to stop out. There has been a few possible explanations touted for the sell off, ranging from China Taiwan fears, profit taking from over overbought conditions and possibly 0 day experation options traders shorting the S&P.

Whichever cause it was, I don't believe it is enough to derail the 'soft landing' positivity and I'm currently still looking for short USD or JPY trades. It's just a case of being patient and waiting for the right time.

Next look: after US open.