Markets will get a chance to re-focus on the US growth story today with the first reading on fourth quarter GDP due at the bottom of the hour alongside weekly initial jobless claims.
EUR/USD looks to me to be breaking down after the soft regional and national CPI numbers. The ECB probably won’t take action next week but the likelihood of future moves is rising as the deflation boogeyman appears. If the US numbers can beat estimates, selling pressure will accelerate.
Headlines to watch and expectations:
- GDP q/q annualized expected +3.2%
- Core PCE q/q annualized +1.1%
- Initial jobless claims 330K