The dollar was little changed against the euro as better-than-expected US jobless claims data were offset by weak US housing starts numbers, while the yen continued to recover in the wake of solid gains in Japanese equities earlier today US weekly jobless claims unexpectedly fell to their lowest level in almost six years over the latest week, official figures showed. Housing starts numbers, however, showed construction on new homes in the US fell to its lowest since March Evidence that the US housing market may be cooling slightly is likely to ease the pressure on the Federal Reserve to keep hiking interest rates Later today, attention will turn to the Philadelphia Federal Reserve's January manufacturing survey and speeches by Fed officials Meanwhile, the release of the European Central Bank's latest monthly bulletin and euro zone inflation data had little impact on the euro as they continued to point to rising borrowing costs in the coming months The ECB reiterated in its monthly bulletin that interest rates remain low and it is therefore keeping a close eye on inflation risks in the euro zone Inflation data this morning, meanwhile, showed euro zone annual inflation dipped to 2.2 pct in December from 2.3 pct in November, though it remains above the ECB's target for a rate of just below 2 pct. The core rate also failed to drop, remaining static at 1.4 pct for the third month running "The second estimate of euro zone inflation will do little to alter the ECB's view that the near term risks to inflation remain on the upside," said Lucy Hartiss at Capital Economics Elsewhere, the yen continued to rebound against major currences as the Japanese equity market recovered today after hefty losses yesterday