GDP was worse than expectations but employment cost index higher
The US dollar has moved higher despite lower than expected GDP growth of 0.7% vs 1.0%. The Employment cost index rose greater than expectations at 0.8% for the 1Q vs 0.6% and the Core PCE came in at 2.0% which has higher than the 1.3% increase in the 4Q. Consumption was weaker at a scant +0.3% for the 1Q vs 0.9% estimate. Most expect a 2Q rebound.