USD flows: USD edges lower on higher claims

The USD is losing a little ground on stronger than expected initial jobless claims in the latest week, even though the Philadelphia Fed survey has come in a little stronger than expected. The uptrend in claims in recent weeks is now quite well defined, and sustains the expectation of Fed easing in September. However, with this well priced in, the main scope for USD losses is against the JPY, where spreads suggests substantial downside potential, and where the Trump preference for a weaker USD makes the most sense given the huge JPY undervaluation.