The USD is mixed, equities are flat to slightly higher and the U.S. 10‐year yield at 2.25%. has traded to a fresh one month low. A stronger than expected U.S. Q3 GDP release, increasing 3.9%q/q annualized, adds fuel to the strong U.S. expansion story with a Fed who will be eager to move away from the zero bound; however the reaction in markets is more nuanced. Today’s release of PCE is an important update for the Fed and therefore markets; the expectation is a stable release of 1.4% on headline and 1.5% on core.
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