• Cryptocurrencies crash with declines of 20+%  across the board
  • Canadian dollar falls back as GDP misses forecasts
  • USD making tentative gains as inflation picks up
  • SEK little changed despite retail sales beat
  • SPA35 looks to recover after fall on Catalan election
  • Merry Christmas

The calm is always followed by the storm, this sentence seems to be particularly well-matched with regard to Bitcoin. After several days of relative calmness sellers have taken control on the market ultimately. Consequently, the price crashed over the past hours to below $12,000 from above $17,000 seen yesterday morning.

The final Canadian data release before the Christmas break has come in worse than expected with GDP M/M for October flat. In Y/Y terms the pace of growth remains an impressive 3.5% but given the expectation for a rise the reading itself has weighed on the Canadian dollar a little.

With the final trading week before Christmas drawing to a close there has been some interesting data for the US with the latest inflation and consumer spending figures released. First let’s look at the inflation data which saw the PCE core price index come in inline with estimates at 1.5% Y/Y which represents an increase of 0.1% on the prior reading and extends the recent run higher.

It’s been remarkably interesting week for the Swedish currency. Firstly, the Riksbank decided to complete its bond buying programme this year announcing implementation of reinvestment policy though. Secondly, consumer confidence improved in December being another reason calling for a strong position of citizens. Last but not least, retail sales in November grew well above forecasts being a potential boost for the SEK.

The euro in particular as it slid a bit overnight following the fallout of the Catalan election. Having almost all votes already counted one may spot that the three pro-independence forces together make up as many as 70 seats and even as they have two seats less compared to the previous election in 2015 the number is enough to hold a slim majority (two seats above). 

Merry Christmas everyone!