US Copper soaring – Markets cautious
Important news for the day:
- Wed, 09th, 04:00 CET NZ RBNZ interest rate decision
US Copper prices
In another protective statement Donald Trump pointed out that tariffs on copper would be lifted to 50% in the near future. As a result US copper prices have been rising sharply. Futures trade in New York have moved about 13% higher and closed trading near the USD 5.60 handle. This marks the biggest single- day price jump in history. Recent implementation of tariffs have not shown a major significant impact into prices in the US. On the other hand, the unpredictable actions of the US President are causing negative sentiment in general markets. Chile is the supplier to imported cope in the US followed by Canada and Peru. The move might be another step towards trying to reach better trade deals with other countries before the new August 01 deadline.
Market talk
The US- Dollar remains in a sideways pattern against most other currencies. While the EUR and GBP remains stable the AUD was able to gear up some momentum following yesterday’s interest rate decision. A breakout above the zone of 0.6550 is still needed in order to create substantially higher prices in the market. Also silver and oil prices remain positive and might indicate that stock markets will remain in their positive mode. However, the S&P 500 and Nasdaq are still expected to move lower, after the strong positive sentiment in recent weeks. Crypto markets on the other hand look set to break higher. Especially ETH and XRP look positive and might lead markets to the upside.
Tendencies in the markets
- Equities sideways, USD stronger, Bitcoin sideways, ETH positive, oil at resistance, Silver sideways, Gold weaker, JPY weak.
Author
Frank Walbaum
FX Strategies.Asia
Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.
