- Weakness seen in cryptocurrencies after recent gains
- US economy grew faster than expected in Q2
- German inflation stalls but Spanish rises
- Stock indices remain well supported
News this morning that Russia has decided to hold off on regulating cryptocurrencies appears to have weighed on price with all 5 markets lower on the day. Ripple (XRPUSD) is the worst hit and lower by some 6%, but there are also notable losses in Litecoin (LTCUSD) and Ethereum (ETHUSD) with the markets dropping almost 5% and just shy of 4% respectively.
The US economy grew faster than expected in the second quarter of the year with an annnualised rise of 3.1% seen compared to a prior reading of 3.0%. The beat now means the past 9 GDP readings for the world’s largest economy have beaten consensus forecasts in what has an incredible run. The data point adds to the recent string of positive USD stories but today has been relatively quiet for the greenback as the currency pauses following recent gains.
The latest inflation data from the most powerful country in the EU has failed to show a rise as expected, with the German HICP coming in inline with the prior reading of 1.8% Y/Y. In M/M terms the print was flat at 0.0% compared to consensus forecasts for a rise of 0.1%. Earlier, we saw a rise in Spanish inflation which now also stands at +1.8% Y/Y. The reading was an increase of 0.2% from the prior print and together with the German reading could be seen to suggest that there will be a beat in tomorrow’s Eurozone wide figure which is expected to rise to 1.6% Y/Y from 1.5% previously.
US stocks remain well supported and close to all-time highs this afternoon with the US500 trading above 2500 after posting a new record peak last night. The latest details on Trump’s tax plan provided a further boost to stock markets across the Atlantic on Wednesday adding to impressive gains seen throughout 2017.