XRP slumps before Ripple gets sued
Source: GKFX / MT4 (December 22, 2020)
ETHUSD is trending higher above a rising trendline, which alongside the $600 level recently held as support. The drop back below $620 support makes the level a potential resistance that could trigger a move below the rising trendline and reverse the uptrend.
TAKEAWAYS
• XRP, the token for crypto firm Ripple tumbled over 17% on news it would be sued by the SEC
• Asian stocks drop but European markets close up amid new UK covid strain fears
• S&P 500 closes lower for 3rd day
• US dollar gains in new risk-off tone in markets
• Silver slides nearly 4% as US dollar gains
• DAY AHEAD: US inflation, initial jobless claims, consumer sentiment
GURU WISDOM
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
MARKETS
*Daily closing price
↘ EUR/USD 1.2165 (-0.63%)
↘ GBP/USD 1.3376 (-0.64%)
↗ USD/JPY 103.61 (+0.30%)
↘ S&P 500 3687.26 (-0.21%)
↘ Hang Seng 26,119.25 (-0.71%)
↘ Gold 1861.64 (-0.78%)
↘ Oil (Brent) 49.87 (-2.04%)
↗ Bitcoin 23,484 (+3.45%)
NEWS
XRP sued
In news that could unsettle the narrative of regulation helping institutional investor interest in cryptocurrencies, the SEC looks set to bring a lawsuit against Ripple for selling ‘unregistered securities’ when it sold XRP to investors. XRP added to its 15% slide on Tuesday in early trading on Wednesday, taking it to $0.40 and its lowest in a month. Ripple will argue against the suit saying that “XRP is a currency, and does not have to be registered as an investment contract,” according to Ripple CEO Brad Garlinghouse.
Dollar rally
Waning risk appetite since news broke of a new variant of the coronavirus in the UK has seen renewed demand for the US dollar as a haven currency. The euro as the second reserve currency and growth-friendly currencies like the Aussie dollar have seen some of the biggest drops. Precious metals too have come back under pressure, notably silver which slumped nearly 4% on Tuesday.
New UK strain
The lifting of some travel restrictions against the UK including by its nearest neighbour France helped lift sentiment in Europe but the threat of a new covid strain undermined confidence in the US where the S&P 500 closed lower for a third day.
DAY AHEAD
*Times in GMT
05:00 SGD CPI (YoY) (Nov) -0.2% -0.2%
08:00 EUR Spanish GDP (QoQ) (Q3) 16.7% -17.8%
13:30 USD Core PCE Price Index (YoY) (Nov) 1.5% 1.4%
13:30 USD Initial Jobless Claims 885K 885K
13:30 CAD GDP (MoM) (Oct) 0.3% 0.8%
15:00 USD Michigan Consumer Exp (Dec) 74.7 70.5
15:30 USD Crude Oil Inventories -3.186M -3.135M
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