Consumer spending (70% of GDP) fell less in Q4 than in Q3, a bright spot in the data. Building inventories, a short-term statistical plus but a long-term drag, helped keep the GDP data from falling off a cliff as well.
Consumer spending fell 3.5% in Q4 versus the 3.8% pace in Q3. EUR/USD modestly firmer, in the high 1.2850s as the US economy retains a faint pulse. Month-end flows will become the focus over the next two hours.
1.2880 and 1.2920 are resistance levels on rallies.
