EUR/USD, USD/JPY flows: Waiting for Friday

NY trading has started with a small bounce after December housing starts came in better than expected (though DGO’s were marginally better than expected, the market did not really react given the volatility of the numbers).  Even so, the market remains comfortable with pricing two 25bps cuts from the Fed in July and October, as CPI/core PCE inflation trends are expected to allow the Fed to ease later in the year.