Currencies are back in demand this morning with risk-loving the flavor of the hour. Given the recent choppiness of markets, I’m loath to say the flavor of the day…

The drop in continuing jobless claims is a hopefully sign for the sluggish US labor market, the sector that is most likely to lag the recovery. The hope is that employers slashed payrolls to the bone early this year and will be forced to hire if business so much as stabilizes, much less starts to grow again.

Falling unemployment would be a tremendous confidence boost for the economy, lifting consumer sentiment, and hopefully activity.

EUR/US has firmed to the low 1.3970s so far and now trades at 1.3965.