Published: 2024-02-08T13:58:00.000Z
USD, JPY flows: USD stronger, JPY softer on claims

Senior FX Strategist
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A modest decline in claims has extended the USD's gains
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.