USD flows: Challenger data better but trend towards higher job losses

Challenger job cuts were down in November after the October spike, but the trend does look to be rising gently, with the 3 month average at 57% y/y. The market will look to the claims data as the next indication for the labour market, but after the ADP and the Challenger data the impression is of mild weakening in employment which should maintain modest downward pressure on the USD.