USD flows: USD edges lower after data

Slightly higher than expected US jobless claims in the latest week, but still at low levels after last week’s dip. The PCE price index for January is in line with CPI at 0.4%, which, while in line with consensus, is a reminder that the inflation genie is not yet fully back in the bottle. US yields are a little lower faster the data, but there is nothing in it to suggest the Fed would want to accelerate their easing pace, and we wouldn’t expect the small negative USD reaction we have seen to extend.