The U.S. economy grew at a weak annualized growth rate at 0.7%, just below expectations, but perhaps it could have been worse after yesterday’s data. Core PCE is 1.2% as expected while the wide PCE is a miss with only 0.1%. The GDP deflator came out at 0.8% as predicted.

Markets aren’t moving that much in the immediate aftermath.

The internals of the GDP report are not so bad: inventories weigh.and they could be replenished in Q1 2016. Personal consumption is 2.2% against 1.8%.

Here is the EUR/USD chart:

The first release of US GDP for Q4 2015 was expected (see full EUR/USD preview) to show a poor annualized growth rate of 0.8%, below 2% seen in Q3. The Fed also hinted about slow growth and recent figures were terrible.