Forex today was less volatile than Tuesday and instead, markets took a conservative approach to the data releases from the US.

US GDP beat estimates and Yellen was hawkish yet the dollar was unable to really take off and instead, US yields did all of the work. In fact, DXY ended flat within a range of 92.992 - 93.435, opening 93.212 vs a previous close of 93.270. US yields were closing around 2.3880 + 2.60% and within a day's range of between 2.3188% - 2.3935%.

US Q3 GDP 2nd estimate arrived at 3.3%, vs 3.2% expected and 3.0% previous. Meanwhile, Yellen says she is worried about the sustainability of U.S. debt trajectory and wants to avoid rapidly raising rates and causing a recession. Then, it was over to Fed's Williams who said that the Fed should continue to raise rates slowly. Meanwhile, markets await the PCE from tomorrow's US session as the next big fixture.

In respect of the currencies,  EUR/USD was better bid early in the session from the German CPI beat to 1.1865 before supply to 1.1846. GBP was pretty much holding onto early gains from European trade despite some noise around the EU's letter to Barnier saying that there is not enough progress made in Brexit talks. GBP/USD dropped from 1.3425 to 1.3374 before bulls picked up cheap sterling and took the price to fresh highs for the session at 1.3448 to close at 1.3408. EUR/GBP bears kept control, chipping away in a drift to the downside to 0.8817. USD/JPY was higher on US yields rallying, breaking above the 100/200-D SMA level at 111.58 - however, bulls were finding it tough going on the 112 handle and offers capped the rally from 112.14 to 111.69 to close 111.91. 

As for the commodity sector, oil was lower ahead of the OPEC meeting tomorrow where a production cut deal is already expected, so will be interesting to see how the outcome affects the price as it seems to be already priced in. Copper was surrendering the bid while gold took a hit on US yields. USD/CAD drifted higher from 1.2847 to 1.2865 while the Aussie consolidated around0.7570 ahead of Chinese and CAPEX data and the Kiwi drifted lower around 0.6860/80.

Key events ahead

• AUD Private Capital Expenditure (Q3)
• CNY Non-manufacturing PMI (Nov)
• CNY NBS Manufacturing PMI (Nov)

Key notes

• Wall Street: Dow Jones hits record high, Nasdaq drops sharply
• Crypto Today: Bitcoin slumps below $10K
• US Q3 GDP: Good corporate figures - Wells Fargo
• Fed's Beige Book: Price pressures have strengthened since last report
• Fed's Williams: Fed should continue to raise rates slowly
• WTI slides below $57 on uncertainty over extension of oil output cut
• ECB's Weidmann: German economy is performing 'exceptionally' well
• Yellen testimony: Its puzzling why inflation has been falling this year
• Yellen testimony: Important to gradually move policy toward neutral level