EUR/USD, USD/JPY flows: Q4 US GDP

The USD pushed marginally lower after Friday economic data, but then recovered as the breakdown shows that the 1.4% number for Q4 GDP was due to a larger than expected decline in government spending caused by the shutdown.  This is a temporary factor and the 2.4% real final sales for domestic purchases is more representative of the underlying trend.  USD could now settle down waiting for further developments on the Iran front over the weekend. A surprise early attack would probably help the USD initially.