USD flows: USD buoyed by solid data

More generally strong US data has pushed the USD higher in early US trade. Initial jobless claims dropped back below 200k, while continuing claims fell and has now largely reversed the rise seen through most of 2025. The Philly Fed and Empire indices also both rose. The data supports the perception that the US is managing strong growth and the decline in employment growth we have seen recently is unlikely to extend.

The USD is up across the board with EUR/USD at is lowest since the beginning of December. Equities are pressing towards recent highs and front end yields are up. The 1.16 area is significant support and a break could open the way for a test towards the base seen last summer in the 1.14 area.