GBP drops across the board despite the highest annual CPI since Nov 2008 (3.7%). The bulk of sterlings climb occurred ahead of the figures before Cable dropped a full cent to $1.4430. Traders are not only confident in the Bank of Englands repetitive calls that rising UK inflation will be temporary, but also preoccupied about the spending decisions that must be taken by the new govt and the impact on overall growth. Aussie drops after the RBA minutes made the case for a possible pause in its tightening cycle. AUDUSD eyed 0.8680, but only a protracted selloff in equities is expected to add on to losses towards 0.8570s. Traders who see EUR to be oversold may see some stabilization against GBP, followed by further gains into 0.8640-45.