The U.S. dollar, which lacks effective stimulus, has begun to adjust, and the long-suppressed non-U.S. varieties have ushered in a correction window. The rebound in international oil prices has also brought a considerable boost to copper prices, which rebounded to the midline of the shock range.
The fundamental and technical aspects of copper prices give clear signals, and the trend is expected to rebound upwards.
The dollar fell sharply
On the one hand, as the Fed officials continue to pay attention to the inflation situation, they may consider raising interest rates by 25 basis points after raising interest rates by 50 basis points, which has reduced investors’ strong tightening expectations and turned their attention to the European Central Bank and the Bank of England, which released tightening language. The action of buying European currencies at a low level;
The market began to react in advance to the rise in commodity prices triggered by the situation in Russia and Ukraine, and the possible economic recession caused by the global central bank tightening wave, prompting the dollar to fall;
The U.S. data, including weekly jobless claims, was negative, which became the fuse for the dollar to accelerate downward;
The US dollar index could not break through the 105 level, and the pressure of technical correction increased.
Oil prices rebound
International oil prices continue to remain high and sideways. Recently, the United States and many countries have continued to release oil reserves, and the European Union’s efforts to cut Russian oil have interfered with short-term sentiment. The superimposed oil price has not been able to break through the recent strong resistance, and the pressure of correction has begun to increase. After a brief release of emotions, investors are still buying oil prices at a low level, indicating that the potential upward momentum is still strong, which has a lot to do with OPEC maintaining a neutral stance. OPEC does not follow the United States to release a large amount of production, no matter how U.S. producers increase production, nor can it make up for the shortfall in crude oil supply.
The rapid rebound in oil prices boosted copper prices.
Fine copper maintains a wide range of fluctuations, and looks back to the midline of the range in the short term
The price of fine copper continues to run above the 4.00 mark, which is a key support level so far this year. As the copper price rises again, it is advisable to pay attention to the first-line competition at 4.50, which is the middle line of the 4.00-5.00 range. It is hindered by the copper price maintaining a weak and fluctuating range, and the risk of breaking below 4.00 is greater; if it can stand above 4.50, the price will look to 4.80-5.00. , the trend is strong shock.
The fundamentals of copper prices lack effective guidance, and the trend continues to be affected by macro fundamentals, the US dollar and oil prices.
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