Currency Focus

USD - Headline income and spending was a touch below expectations, but the thing that will jump out at people is the zero growth reading on the core PCE deflator. It's a nice Christmas present for the Fed. It has moved half the distance toward the top end of their comfort zone. I'm sure they won't declare victory but they will be pleased.

GBP - The high level of employment in the UK means that less productive workers are also able to get jobs which obviously reduces overall productivity.