Hi traders and welcome to a brand new recap.
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Let’s have a look at the highlights this week.
On Sunday it was reported that US fuel pipeline operator Colonial Pipeline was forced to shut down it’s fuel network. Colonial Pipeline operates an over 5,500-mile pipeline network from Texas to New Jersey.
The main points of the story are
- a ransomware cyberattack forced the company to shut its network down.
- As of posting the network is still down. which threatens a shortage of fuel in the eastern US.
- major segments of the Colonial system remain offline.
- truckers in the US have been given the go-ahead to extend their driving hours in an effort to ensure fuel deliveries
- Gasoline futures wrose higher on the news.
On Monday we saw Cable (GBP/USD) had a huge move of over 170 pips.
- Move to step three of lockdown easing on May 17.
- Indoor hospitality to reopen
- Indoor sectors such as cinemas, pubs, restaurants, hotels to reopen to some capacity limits
- Social distancing rules to remain in public settings in England.
- People to make own judgment in private
- This unlocking is a considerable step on the road to normality
- I am confident we can go further with lockdown easing’s
- We will be saying more later this month on what role there could be for certification’s and social distancing
With GBP/USD already in a bullish mood, this news helped it even further.
Later on in the week Elon Musk announced that Tesla had suspended taking Bitcoin for vehicle purchases.
- Musk says is concerned about the environmental impact of bitcoin, increasing use of fossil fuels for mining & transactions, especially coal
- Tesla will not be selling its BTC
- Will use BTC as soon as mining transitions to more sustainable energy
- looking at other cryptos that use less energy
We saw Bitcoin prices drop sharply until finding support at $47,000 where it had previously bounced in March and April. Was it all a ploy to get Bitcoin cheaper to buy more? Musk to cryptos is like Trump was to the US Dollar. A tweet/comment can send the markets crazy!! Bitcoin/USD price is currently floating at $50400
Lastly on Friday we had the US May preliminary consumer sentiment data which came out at 82.8 when 90.0 was expected.
- Weakest since Feb
- Prior was 88.3
- Current conditions 90.8 vs 99.8 expected
- Prior current conditions 97.2 prior
- Expectations 77.6 vs 84.5 expected
- Prior expectations 82.7
- 1-year inflation 4.6% vs 3.5% expected (highest since 2008)
- 5-10 year inflation 3.1% vs 2.7% Prior