Equities correct Tuesday’s gains, dollar consolidates

Volatility has been minimal so far on Wednesday, with the FX market being calm, while stocks slid somewhat following yesterday’s gains.

Later today, the US third-quarter GDP revision is due along with PCE indices. However, these data are not expected to cause any volatility as most traders and investors are off for a holiday already. 

Additionally, existing home sales will be published, and the consumer confidence index for December is due as well. Lastly, the EIA crude oil stocks are on the schedule today.

Earlier on Wednesday, the UK third-quarter GDP increased 6.8% year-on-year, slightly above expectations, but rising only 1.1% quarterly. The GBPUSD pair advanced some 30 pips after the numbers. 

US indices remain near all-time highs, supported by a handful of mega-cap stocks, while other smaller stocks are already in bear markets. 

In rates, the 10-year US yield moved higher this week, but it remains in a range between 1.35% – 1.55%, not trending at the moment. The 2-year yield trades close to its cycle highs near 0.75%.

Source: https://www.axiory.com/analytics/market-news/equities-correct-tuesday-s-gains