Something huge is going on in world currency and it is definitely moving copper and other metals markets!
We are seeing key numbers at levels we haven’t seen since 2007! The 10 year treasury yeild has been over 4.25% for days. The world will be looking for these dollar yields which is continuing to weaken other currencies. The yuan has weakened to 7.30 for one US Dollar, levels not seen since, you guessed it 2007!
It’s not just the levels but the jarring movements during the day. Already today the yuan has been between 7.20 and 7.30 those are dramatic moves that should take weeks!
Despite all of this copper is up today as are all other metals. This is what we need to watch this week. China is having massive problems in their economy and as the world’s biggest copper consumer by far that will have an impact. The only way for them to get out of this is to cut interest rates, further weaking the yuan against the dollar.
All eyes are on Jerome Powell in Jackson Hole for his speech Friday. Not expecting a thing other than strong dollar talk by way of continued rising interest rates staying higher for longer. This is the news that drives metal, so stay tuned and we will keep you updated.