MBCC TH 14th July'23 - "What is the market up to post US CPI, Bonds and FX markets are saying different things?

We got a softer than expected US CPI, headline CPI print fell 4.0% YoY to 3.1% YoY (due to shelter, used-cars, and seasonals, BUT the Fed preferred measure the Core Services CPI Ex-Shelter, fell to +3.93% YoY - the lowest since Jan 2022!

Market got excited, Dollar fell and broke < 100, US 10 year Bond yields u-turned from 4.08% down to 3.77%. This got the market super excited, or rather caught the algos out, and Gold broke > $1930, Silver got to $25, S&P 500 back to 4500+, and even boring Brent got to above $81!

So..is the move real, the start of something, or just got blind sided by the algos? What are cross asset signals telling us?