USD flows: US data USD supportive

The combination of lower than expected jobless claims, both initial and continuing, and a much stronger than expected Philadelphia Fed survey, have given the USD a boost in early North American trading. The sharp rise in initial claims last week had been seen as likely erratic, but confirmation is nevertheless comforting. The recovery in the Philadelphia Fed survey is also a sign that the economy may be recovering after a weak H1. The numbers haven’t had much impact on US yields, but they should take the edge off USD bearishness for now, while also helping to retain a positive risk tone.