USD flows: USD dips on JOLTS

The USD has fallen back following a lower than expected JOLTS number for July – the lowest since September last year. Caution is necessary, however, as that September number proved to be an isolated dip, and the picture so far this year has been fairly flat. Even so, US yields are lower and the USD is weaker across the board.

The JPY ought to have the most potential for gains here, as the decline in US yields is also leading to a rise in the implied equity risk premium, even though equities are slightly higher in response.