USD flows: USD lower after claims

While US initial claims rose strong to 236  in the attest week, this only corrects the decline from the previous week which was likely Thanksgiving related. The decline in continuing claims is similarly likely seasonally distorted so we can’t glean a great deal from the data. The USD is nevertheless a little softer, with the JPY leading the way, helped by lower US yields. We still doubt the potential for EUR/USD to break above 1.18, but there is more scope for USD/JPY to extend losses.