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USD/CAD

• USD/CAD looks again below its 200-day moving average.
• The USD/CAD is currently down 0.4 percent at 1.2475.
• The pair threatened to breach its 200-day moving average (blue line) in trading yesterday, only to settle just above it into the close when stocks fell, creating a less favourable environment for risk bets.
• As a result, oil declined, causing the loonie to retrace its gains from 1.2453 to reclaim its position above 1.2500. However, the dollar is looking a bit lethargic today, and with oil prices coming again, USD/CAD is trading lower. The daily close will once again be crucial in determining whether sellers can maintain a breach below the 200-day moving average at 1.2498.
• If this is the case, the pair will have a larger negative tilt as we approach trade next week. Following that, the 1.2400 level will be a crucial objective, followed by a possible push towards the October lows at 1.2300.
• In any case, the risk mood will be an important issue to consider before the weekend arrives. For the time being, things are peaceful, but keep in mind that we still have US retail sales to deal with later today.

Germany

According to the German economics ministry, existing supply constraints are expected to endure for some time.

Germany’s 2021 GDP has also been tentatively affirmed at 2.7 percent.

German GDP will increase by 2.7 percent in 2021. The increasing trend in inflation will begin to slow considerably in January.

Q4 growth will be muted owing to production challenges and COVID-19 constraints;

It’s amusing to see how confident they are about the inflation prognosis when they believe supply constraints will endure for a long time. The latter means that cost pressures are expected to remain high in the next year.

Cryptocurrency

• The decline and consolidation below signal a break of the bullish trend begun in May 2020.
• Pressure on US technology companies was a major trend in US trade yesterday, bringing cryptocurrencies down with it.
• Bitcoin is down 2% overnight to $42.8K, while ether is down approximately 1.5 percent to $3.3K, bringing the crypto market capitalization to $2.05 trillion. Other top currencies are decreasing with far less vigour, as investment fund darlings, rather than crypto aficionados, have taken the brunt of the damage.
• The Doge, which has become recognised as a form of payment for some (low-cost) Tesla products, needs its own tale. Some claim that things for Doge are selling out quicker than goods for dollars. On this news, the currency is up 18 percent today at $0.20, approaching the month’s highs. This report exemplifies crypto’s continuing infiltration into business culture.
• Tesla, on the other hand, will not necessarily keep these currencies indefinitely. People will be more active in spending their DOGE investments. The technical perspective of the ETHUSD is discouraging since the selling accelerated earlier in the week while it attempted to break over the 200 SMA for the second time.
• The drop and consolidation below indicate a break in the positive trend established in May 2020, when the pair stabilised above this level. In the worst-case scenario, it might mean a drop to $1300-1700, or almost half of current levels.
• It seems unlikely that the price of ether would fall by 95 percent during this bad market cycle, as it did in 2018, thereby cancelling out the climb from 2020.
• Bitcoin’s behaviour is no less concerning. A death cross forms in it as the 50-day dives below the 200-day. Simultaneously, the price is below these averages, reinforcing the negative warning. Attempts to create a comeback earlier in the week have been met with more heavy selling, showing increased seller pressure.
• The gloomy picture in Ether and Bitcoin makes the cryptocurrency market as a whole seem wary in the short term. Individual growth stories, such as DOGE, risk losing traction swiftly today if the general backdrop goes unfavourable.