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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- Selling pressure on ‘risk on’ commodity copper has been rising in recent weeks after reaching an all-time high at 501 on March 11; hence, investors have been questioning if the recent correction is only starting.
- Weakening fundamentals (strong deceleration in Chinese economic activity) have been pricing in cheaper copper prices in the near to medium term.
- For instance, the chart below shows that the China 10Y yield, which could be considered as an alternative barometer of the Chinese economic activity, has been pricing in much lower copper prices.
- Copper is down 20% since its March all-time high and is approaching its key support at 400; with the recession risk surging globally (particularly in Europe), market uncertainty could leave copper prices vulnerable in the near to medium term.
- Next key support to watch below 400 stands at 388.30, which corresponds to the 38.2% Fibo retracement of the 206 – 501 range (2020/2022 low high).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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