The overall growth rate was weaker than expected at up 2.2% but consumer spending was better than expected and the US is a consumption economy, after all… Inventories were a drag on growth, a bit of a surprise.
EUR/JPY is taking the brunt of the price action as USD/JPY swoons.
Equity futures are holding up as the market falls back on the notion of Bernanke coming to the rescue with more bond-buying if growth dramatically falters.
Central bank selling is expected in EUR/USD rallies above the 1.3260 level. 1.3275 and 1.3300 barriers are rumored
USD/JPY buying from Japanese institutional investors is expected ahead of 80.00. above the market.