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The first read for US GDP growth came in exactly as expected: 3.2% in the fourth quarter of 2013, following a big gain of 4.1% in Q3. This is the initial release, and will be followed by two revisions. Q3 saw big upwards revisions. Jobless claims were expected to remain around the 326K level seen last week, but disappointed by rising to 348K.

The dollar was strengthening towards the publication, with EUR/USD at 1.3576, GBP/USD at 1.6474, USD/JPY at 102.57, AUD/USD at 0.8775 and USD/CAD at 1.1186. The dollar is slightly stronger after the publication, but the moves are quite limited.

Personal consumption (70% of the economy) rises at 3.3%, below 3.7% expected.  The GDP Price Index was expected to rise by 1.2%. It rose 1.3%. This is another measure of inflation. Yet again, inventories are up, and this isn’t a good sign for the next quarter. However, inventories were up also in Q3, and continued rising. Real sales are up 2.8%, up from 2.% in Q3.

The Federal Reserve announced a second taper of QE last night. The rout in emerging markets and a weaker NFP didn’t stop the Fed from pushing through its policy.

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