USD flows: Recovery in housing starts of limited significance

US June housing starts have come in on the strong side of expectations, recovering from the year’s low seen in May, but the underlying trend remains quite weak, so there is little reason for the USD to respond significantly. But the USD has slipped generally lower through today’s session, and the data might be sufficient to stabilise it for now. Equity futures have firmed a little after the data, having slipped lower through the European morning, suggesting the JPY will remain soft on the crosses.