Strength for copper ahead?

Giles Coghlan LLB, Lth, MA Financial Source

With green technology relying heavily on copper for conducting electricity via wiring and conductors the need for copper is expected to grow in the coming weeks and months ahead. One near term potential boost for copper may well be the US elections coming up. Whereas President Trump plans to spend more on roads, bridges, and airports he has signaled very little interest in ‘green’ investments. Joe Biden, by contrast, has said that he will spend around $2 trillion over four years to improve infrastructure, create zero-emissions, public transport, and create clean energy jobs. So, a Biden Presidency stands to encourage significant green tech spending. That will be a boost for further copper demand.

The recent positive retail sales data and industrial production figures from China see brightening prospects for China’s economy. Furthermore, the OECD said that the global slump will not be as bad as it had previously projected. The Organisation for Economic Co-operation and Development was founded in 1961 to stimulate world trade and economic progress. Their latest GDP projections for this year and the next had world GDP at -4.5% for 2020 and +5% for 2021. Off the major countries and trading blocks, China alone was projected to keep in positive territory. The OECD projected growth of +1.8% this year and +8.0% in the year ahead.

With the latest rate meeting from the Fed passed and the Fed projected to keep rates near zero through 2023 the stimulus from the Fed for further growth is there. According to former Goldman Sachs Group Inc Chief Executive Office Llyod Blankfein, it is probably a good time to invest in commodities while prices are lower.

Learn more about HYCM

Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.