Headlines:Dollar checks back its early week lossesUK April CPI +9.0% vs +9.1% y/y expectedECB’s Rehn: It is necessary for rates to move relatively quickly out of negative territoryECB’s de Cos: Bond buying should end in early Q3, first rate hike to follow shortly afterUS MBA mortgage applications w.e. 13 May -11.0% vs +2.0% priorEurozone April final CPI +7.4% vs +7.5% y/y prelimJapan to hold auction to sell 4.7 mil bpd of oil from its national reserve on 10 JuneMarkets:JPY leads, GBP lags on the dayEuropean equities lower; S&P 500 futures down 0.8%US 10-year yields up 2.1 bps to 2.991%Gold down 0.1% to $1,812.23WTI crude up 1.7% to $114.30Bitcoin down 1.0% to $29,727It was mostly a quiet session in terms of key headlines, though we did see UK inflation surge to 9% – its highest in some 40 years.That will keep the pressure on the BOE to act more aggressively but also squeeze the purse strings of UK consumers, with the cost-of-living crisis set to worsen in the months ahead.Risk tones were more cautious and that saw a return to old habits in markets with the dollar and yen gaining, while equities slumped.European indices were little changed early on but are posting slight losses now with US futures marked lower after a more sluggish start to the session earlier. Elsewhere, bonds are also offered with 10-year Treasury yields moving up to close in on the 3% mark again.In FX, EUR/USD is marked down by 0.3% to test 1.0500 while GBP/USD retreated from 1.2500 at the start of the day to hit a low of 1.2370 before keeping near 1.2400 currently.AUD/USD is also dragged lower by 0.3% to test the 0.7000 handle on the session while USD/CAD is up 0.2% to around 1.2830-40 levels.As much as there was some scope for optimism early this week, the subtle moves today are but a reminder that the storm clouds are still hanging over markets for the time being.