GDP rose 2.6% annualized. The ECI rose 0.6% as expected. Year over year, wages have risen 2.2%. Personal consumption is up 4.3%, better than expected and strong in general – the fastest since Q1 2006. Government spending dropped 2.2%, taking 0.4% off of GDP. Fixed investment rose 2.3%. The details are better than the headline. The USD is marginally lower, with EUR/USD rising in range. The greenback is sliding against the Japanese yen remains stable against the euro and the pound while soaring against commodity currencies. The United States was expected to report an annualized growth rate of around 3% in Q4 2015 after a final 5% growth rate for Q3. The preliminary read has a lot of impact, but it is not alone. The employment cost index is getting attention as well and it was expected to rise by 0.6%. The recent wage numbers from the NFP were very disappointing, but the Fed did not mention them. What did the Fed know? Before the publication, EUR/USD traded around 1.13, GBP/USD around 1.5050, USD/JPY around 117.70, AUD/USD around 0.7777, NZD/USD at 0.7250 and USD/CAD around 1.2670. Canada also releases its GDP number at the same time. The figures (updated) GDP was expected to rise 3.3% (Annualized). Actual: 2.6% – a disappointment. Employment cost index was predicted to rise 0.6% q/q.. Actual: 0.6%. Year over year, it is up 2.2%. GDP Price Index was predicted to rise 1%. Actual: -0.1%. Personal Consumption Expenditure (PCE) Prices were expected to rise 0.8%. Actual: -0.5%. Core PCE was expected to rise 1.2% q/q.. Actual:1.1% GDP Background The Federal Reserve left the “patience” wording regarding rate hikes unchanged but did upgrade its wording about the US economy and about the job market. There was no mention about wages: the recent NFP report showed a slide of 0.4% in wages during December and a rise of only 1.7% y/y. It’s hard to envision core inflation without a rise in salaries. In our latest podcast, we do a Fed rundown analyze the Greek elections and discuss the suffering Aussie Download it directly here. Subscribe to our iTunes page Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Canadian GDP falls 0.2% – USD/CAD shoots above 1.27 Yohay Elam 7 years GDP rose 2.6% annualized. The ECI rose 0.6% as expected. Year over year, wages have risen 2.2%. Personal consumption is up 4.3%, better than expected and strong in general - the fastest since Q1 2006. Government spending dropped 2.2%, taking 0.4% off of GDP. Fixed investment rose 2.3%. The details are better than the headline. The USD is marginally lower, with EUR/USD rising in range. The greenback is sliding against the Japanese yen remains stable against the euro and the pound while soaring against commodity currencies. The United States was expected to report an annualized growth rate of around 3%… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.