Euro sells off and is losing across the major counterparts this morning. After opening today’s session around 1.1875, EURUSD slipped to session lows of 1.1817 earlier this morning already. With Christmas holidays just round the corner, and liquidity thin, we may be in for some unexpected volatility.

Trigerring the losses for the euro were concerns raised following the elections of the regional government in Catalonia, with indications pointing towards the pro-independence parties garnering 70 out of 135 seats. The Spanish Government had hoped elections would deliver a more moderate administration – but so far these plans seem to be at risk.

The Aussie continued to enjoy support with the currency enjoying some good gains against its major counterparts this morning. The AUD is presumably taking the cue from recent higher government bond yields.

The US Dollar has behaved well so far this morning, showing some signs of consolidation after a week of losses. It will most likely close with a weekly loss but so far the buck seems to be fighting back.

The US Senate yesterday approved a bill to fund the federal government through till January 19th and in the process avert a government shutdown.

Ahead of us we are expecting Canadian GDP, US Durable Goods Orders and US New Home sales amongst the most relevant pieces of data out today.

In the meantime wishing you all the very best wishes for Christmas!