Summary:

• A failure to talk-down the single currency has sent the EURUSD to 1.25
• DE30 tumbles, falling around 300 points in the last 24 hours
• Mixed Canadian data leaves little lasting impression on CAD
• NOK edges higher on Norges Bank announcement
• Nordea follows JPM in banning employee crypto trading

 The earlier decision by the ECB to stand pat and keep rates unchanged was almost unanimously expected, with the press conference with President Draghi seen as more likely to drive the markets – and he didn’t disappoint.

There were strong moves higher seen in both the Euro and bond yields as the Italian failed to make any serious attempt to talk down the recent rise in the single currency and the impact can also be seen in the stock market with the DE30 falling back from its highest levels of the day to make a break lower.

The latest data on consumer spending form Canada have painted a somewhat mixed picture with the headline retail sales figure disappointing and the the core reading beating forecasts. In M/M terms the retails ales number for November came in at +0.2% compared to an expected reading of +0.7% and a prior print of +1.5%. Core retail sales m/m rose by 16.% compared to an expected reading inline with the previous number of 0.8%. 

The Norwegian Krona has been on the rise today after the Norges Bank left rates on hold. Even so, the domestic currency strengthened to some extent as the Norwegian central bank is still seen raising rates later this year. Prior to the meeting everybody was heavily focused on even subtle changes in the bank’s rhetoric which at this stage seem to be decisive. Having said that the bank decided to leave its economic backdrop untouched underlining that the balance of risks does not appear to have changed substantially since the December MPR (notice there were no new macroeconomic forecasts at today’s meeting, the next broad meeting will take place on 15 March).

Bitcoin has been moving up over the course of the recent hours however sellers seem to still keep control on the market. From a technical point of view one may notice that the price has been moving of late within an ascending triangle pattern but bulls have already come to an end therefore a possible pullback cannot be precluded at this stage. What’s more, the price has also faced a resistance from a descending trend line which could also play a considerable role in the nearest future.