- The US economy expanded at a lower pace than expected at the end of last year. GDP grew 3.2% in the fourth quarter, vs. estimate of 3.3%. Consumer spending, however, ticked higher at a 3% rate and greater than previously estimated.
- The US economy keeps surprising many economists that thought last year the regions would slip into a recession following one of the most aggressive tightening cycles of the Federal Reserve. Instead, a strong labour market supported further consumer spending and kept the economy “moving”.
- Busy day in the Euro-area today with Germany, France, Spain and, Eurozone Aggregate CPI coming out as well as Germany retail sales and France GDP. The euro trades in a narrow range this morning ahead of the data, currently at 1.0835. We have tried to break past 1.08 yesterday ahead of the release of US data but the pair got rejected there and bounced higher to roughly where we are now.
- In the UK, Mortgage Approvals are due, and cable remains range bound. We have now been trading in the 1.26-1.27 range for two weeks and I don’t see it changing unless we get any alarming data out of the US or if more BOE officials start to come out as more dovish.
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- Bitcoin had a wild ride in the last 24 hours after the stock market pared gains. The cryptocurrency jumped as much as 13% to trade at $63,968, the first time since November 2021.
