Copper Streak Continues as Dollar Weakens
Copper prices have notched their tenth straight weekly gain as the US dollar declined in value. The currency's slide is significant because copper, like many commodities, is priced in dollars. When the greenback weakens, it makes the metal cheaper for buyers using other currencies, potentially boosting demand.
The dollar's decline follows comments from Fed Governor Christopher Waller, who cooled expectations of another Federal Reserve rate hike. As a result, CME FedWatch shows that September's hike odds have fallen to roughly a coin flip from closer to two-in-three just yesterday.
Meanwhile, the physical market is showing signs of easing tightness: on the London Metal Exchange (LME), the cash price still sits above the three-month contract, but the gap narrowed to $57.93 per ton from $171.40 a week earlier. This means that traders are paying less extra for metal right now, giving prices more room to be influenced by macro signals like the dollar and interest-rate expectations.