Jobless claims surged to 589,000 in the latest weekly data while housing starts fell sharply, by 15.5%. The claims jump is a worry but the fall in housing starts a good thing as builders try and sell off inventory.
USD/JPY is falling sharply this morning, a move that began before the data. Macro hedge funds have been heavy USD/JPY sellers since the US open, triggering stops below the 88.60 level in the process.
USD/JPY has fallen to 88.10 and EUR/USD has dipped to 1.2965 as risk aversion returns from a very short holiday.
