USD, JPY flows: USD stronger, JPY softer on claims

Initial and continuing claims both dipped a little lower in the latest week, essentially in line with the market consensus, but this was enough to give the USD a modest further boost, gaining around 0.15% across the board. The USD remains generally well bid, but particularly so against the JPY, helped by the new highs seen in the S&P 500 yesterday and the generally low vol picture in the FX market which encourages carry trades. Even so, the USD/JPY behaviour relative to yield spreads makes the current move look untrustworthy and vulnerable to any turn lower in equities.