Dollar Higher, US GDP Meets Estimates
-GDP QoQ (4Q A) meets estimates at 3.2%
-Initial Jobless Claims weaker than 330K expected, coming in at 348K
-USD/JPY spikes with equity futures ahead of the open
Following the blowout third quarter GDP reading in December, the fourth quarter annualized print met estimates coming in at 3.2% quarter over quarter. While we saw Initial Jobless Claims miss estimates along with Personal Consumption, the USDollar found some support against the majors as US equity futures pushed higher into the open. Data from the US Commerce Dept. indicated that we had a 2.5% contraction in durable goods QoQ, but a jump in residential housing, federal nondefense spending and fixed investment helped make up the difference.
The greenback is currently seeing notable strength against the Euro following German CPI that came in towards the downside. While market expectations called for a -0.4% MoM reading, the release indicated a 0.6% contraction in CPI from December to January.
January 30th, 2014 (5-Minute Chart)
Source: FXCM Marketscope
Gregory Marks, DailyFX Research Team
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