SG:Copper seen falling as stronger dollar cuts demand for metals
Bloomberg reported that copper futures, trading little changed, were poised to decline for the first time in three sessions as gains in the dollar reduced the metal’s appeal as an alternative investment.
The Bloomberg Dollar Spot Index, a gauge against 10 major trading partners, rose for a seventh session, heading for the longest streak since May. Through April 17, copper dropped 11% this year amid signs that slowing economic growth would reduce metals consumption in China, the world’s top consumer.
Mr Tim Evans a Chicago based chief market strategist at Long Leaf Trading Group Inc said that “We’ve had a push up in the dollar and that caused a negative price action. Trading volume is very low, and there’s not a lot of activity in this market.”
