Copper Extends Fall on Hawkish Fed Bets
Copper futures fell to around $6.4 per pound on Monday, extending last week’s losses to hit six-week lows as firm expectations for a US Federal Reserve rate hike weighed on risk-sensitive assets. Traders increased their bets on a Fed rate increase following Friday’s stronger-than-expected US inflation data, with markets currently pricing in around an 86% ...
Copper prices continued their downward trend on Monday, slipping to around $6.40 per pound, marking the lowest point in six weeks. This decline was driven by growing expectations for a rate hike by the US Federal Reserve, causing a decline in risk-sensitive assets. Following a stronger-than-anticipated US inflation report on Friday, traders increased their bets on the Fed raising rates by 25 basis points on Wednesday, with markets pricing in an 86% chance of this increase.
Oil prices also climbed following Saudi Arabia's decision to halt the East-West pipeline bypassing the Strait of Hormuz, sparking concerns over inflation. In a related development, copper prices plummeted nearly 5% last Thursday after reports emerged that the Trump administration had postponed a decision on tariffs for refined copper imports, with US officials worried that such tariffs could further drive up domestic copper prices and boost manufacturing costs.
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