Although currency markets remained subdued over the festive period, the euro experienced a ‘flash crash’ on Christmas day after fears over elections in Spain. The single currency dropped 3 percent against the dollar before recovering over the course of the rest of the day. The crash happened at a time when many markets remained closed and investors sidelined so just a few sales of the euro had a large impact on its price.
The dip came after separatist parties in Catalonia won a majority of seats in the regional parliament, fueling fears of a new push for independence.
15:00 – USD: CB Consumer Confidence; Forecast at 128.2 against a previous of 129.5