USD flows: USD slips lower on higher initial claims

The USD has generally been knocked lower by the sharp rise in initial jobless claims in the latest week. Claims have been very steady in recent months and this is the first significant rise for some time, taking initial claims to their highest since August. At this stage it is an isolated reading and shouldn’t be given too much weight. But short end yields are a tad lower and the USD with them. Coming on the back of the softer employment report and the weaker ISM and PMI surveys, the claims numbers support a more USD negative view, and risks should now be towards 1.08 in EUR/USD and 155 and below in USD/JPY.