Copper Turning Lower
The recent short idea issued in copper futures has triggered on a break of the 3.3445 lows this week. Copper prices have turned sharply lower following the rejection at the 3.7300 and with support now broken, the focus is on a move down towards the 2.9610 level next. With the US Dollar trading at fresh 20-year highs and with global bond yields continuing higher, commodities prices are suffering. Copper, often used as a barometer for global economic health, well reflects the recessionary fears gripping markets in the face of continued central bank tightening and elevated inflation. With this in mind, the outlook appears skewed towards further losses.
Keep An Eye On
The underlying narrative here is that a higher US Dollar is bad for copper prices. If the current USD hot streak continues, we can expect copper to continue lower, therefore its important to monitor USD-linked news and events. Today we hear from Fed’s Powell along with other Fed members ahead of tomorrow’s GDP and unemployment claims data and Friday’s headline core PCE data.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.