USD flows: USD firmer after data, but...

US data on balance slightly on the strong side of expectations, with PPI up 0.6% in February, and initial and continuing claims both falling, although retail sales came in weaker than expected, with January also revised lower. Core PPI was also only modestly above consensus at 0.3% m/m, so although US yields have edged up and the USD has rallied modestly, we wouldn’t expect any followthrough, and the initial move may be quickly reversed.