MB: Metals slightly on the defensive in wake of stronger dollar
Analyst Ed Meir looks at what is moving the metal markets on Monday. Copper and General Commentary: Metal prices finished mostly higher on Friday, the day of the unexpectedly positive US non farm payroll report, but what was perhaps more interesting about the session, was the fact that metals did not sell off on account of the stronger dollar. This was telling us at the time that metal prices were possibly decoupling from the currency component. However, it seems Friday’s session was a "one-off", as the stronger dollar seems to have reasserted itself, (now at $1.3910 against the Euro), but this time, we are seeing the expected declines in both metals and energy. We suspect that this sloppier tone in metals will continue through Monday and possibly into Tuesday, since the dollar is quite oversold and may have more room to run. In addition, it seems investors are having second thoughts...