The Pound continued its bounce on Tuesday as the latest retracement move led it to a session high of $1.7691 at 10:30GMT. With mixed CPI and RPI data, it seems as if Sterling responded primarily to technical indicators and further short covering. CPI came in at 0%, which was in line with expectations, but was still sharply down from May's mark of 0.4%. However, the YoY data showed improvement, as it printed at 2.0%, compared to the 1.9% posting in May. RPI (MoM) came in line at 0.1%, but fell from May's increase of 0.2%. Though the data was mixed, it did not add pressure on the BoE for possible rate cuts, and thus provided further incentive to Cable carry traders to hold onto their positions. In equities, the FTSE 100 was down in early trading following disappointing news out of leading sectors. The oil sector was also hard hit as BP shares declined 1.7 percent after the black gold giant said one of its platforms in the Gulf of Mexico was tilting 20-30 degrees in the aftermath of Hurricane Dennis. The food industry stood to gain however as Sanford Bernstein's positive outlook for the sector helped companies like Cadbury Schweppes and Unilever gain 0.4 percent. EnglandВ's benchmark index was down 17.7 points to 5,224.7 at 08:26GMT. The 10-year Gilt rose 1bp to 4.30 percent, a three-week high, as inflation-positive data subsided fears of a rate cut by the BoE. The dropping bond prices indicate that there is a growing credence among investors that interest rates will at least remain steady.