ForexLive European FX news wrap: Pound bounces on stronger UK inflation ...Middle East

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Headlines:Cable continues to run higher after stronger UK inflation dataThe bond market holds the cards for trading this weekUK December CPI +4.0% vs +3.8% y/y expectedEurozone December final CPI +2.9% vs +2.9% y/y prelimECB's Lagarde says confident inflation will reach 2% targetECB's Knot: Markets are getting ahead of themselves on rate cutsECB's Panetta says awaiting data to confirm disinflation outlookUS MBA mortgage applications w.e. 12 January +10.4% vs +9.9% priorMarkets:GBP leads, AUD lags on the dayEuropean equities lower; S&P 500 futures down 0.4%US 10-year yields up 0.5 bps to 4.071%Gold flat at $2,027.31WTI crude down 1.8% to $71.08Bitcoin down 1.8% to $42,664The highlight of the

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