The dollar slowly but surely makes its way up, despite the accumulated negativity over Jerome Powell in recent days. During this period of nearly two weeks stock markets also rose, but this did not lead to an increase in industrial metals as usual. Dollar surge and stock sale led to a deterioration in industrial and precious metal markets, resulting in a significant increase in the correlation between copper and other metals.
What is the biggest concern for investors in industrial metals is the Fed's intention to raise interest rates, and hence the dollar to appreciate. Another thing that will affect metals is Trump's protectionist policies that can greatly limit US imports, and at the same time, if we see a re-sell Sell on the stock markets, industrial metals will most likely be targeting a new bottom.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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