EUR/USD: Goldilocks Alive and Well and Living in the States

Q4 GDP beat expectations to the topside but the inflation measures were contained. The chain weighted price index was a bit firm at +1.5% but the employment cost index was below forecasts at up 0.8%. EUR/USD is showing a modest response to the data, dipping only to the 1.2940s before stalling. This is the tip of the data iceberg, with Chicago PMI, construction spending and most importantly the FOMC statement still to come.