In June, US companies hired the most workers in 10 months. With the government’s stimulus support and the economy recovering, companies are offering higher wages and incentives to entice millions of unemployed Americans as we speak. “Wage growth tends to lead to strong demand for durable goods, a key sector for the metals markets,” said ANZ analysts in a note. It is reasonable to expect a boost in metal demand.
Global copper smelting activity declined in June after a rebound a month earlier, mainly because Chinese plants closed for maintenance. “In copper, the narrative remains one of a slow march towards normality with material divergences at a regional level,” said Guy Wolf, global head of analytics at Marex, which helped to develop SAVANT. With the supply side relatively stable and unchanged but bigger demand on the horizon, the copper price might see a sizable increase, ending the downward trend since mid-May.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
