Copper Prices React to Trump Comments
Copper Higher Midweek
The sell off in copper has stalled for now with futures prices tentatively higher today as traders monitor developments in the US/Iran peace process. Trump signalled this week that there had been progress towards a deal with Iran with some players speculating that a deal could come as soon as the next few weeks. However, these remarks were tempered with the warning that Iran is facing a severe strike in ‘two or three days’ if no deal is agreed.
Conflicting Signals from Trump
Earlier in the week, Trump postponed planned attacks on Iran to allow for further negotiation. As such, there is still a great deal of uncertainty in the air for traders though it seems that optimism is starting to creep back in. If we do get news of a breakthrough in talks, however, copper prices stand to rally sharply as risks sentiment soars. Alternatively, if no deal is made and Trump finally delivers on his threats to end the ceasefire, this would be heavily bearish for risk assets with copper prices set to drop sharply as USD and oil spike higher. As such, plenty of volatility risk near-term with incoming news flow set to remain the key driver for price.
Technical Views
Copper
For now, the selloff has stalled ahead of the bull trend line and 6.1090 level. While this area holds, focus is on a continuation higher with a fresh test of the 6.5830 level the next objective for bulls. If we break sub-6.1090, however, focus shifts to 5.,8550 as the next support to note.
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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.