We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • As risk sentiment takes a turn lower, high-beta currencies such as the Australian Dollar has been among the underperformers. Get your $AUDUSD market update from @JMcQueenFX here: https://t.co/nXadRykouT https://t.co/szzQ0PKNR2
  • Heads Up:🇨🇦 BoC Gov Poloz Speech due at 17:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.43%, while traders in US 500 are at opposite extremes with 77.00%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xjdScTDBXn
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 2.57% Gold: -0.32% Silver: -0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nRUi0hbwoO
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.28% 🇬🇧GBP: 0.25% 🇦🇺AUD: 0.17% 🇨🇭CHF: 0.04% 🇯🇵JPY: -0.07% 🇪🇺EUR: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/noQ2M4dTit
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 1.29% Wall Street: 1.24% France 40: 0.15% Germany 30: 0.10% FTSE 100: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/AiUmtoNeVW
  • The British Pound is under renewed selling pressure this morning after BoE deputy governor for banking and markets said that the central bank is keeping ‘our whole tool set under active review'. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/fY4HewczpL https://t.co/AX1qMeq8ks
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.31% 🇨🇦CAD: 0.19% 🇦🇺AUD: 0.18% 🇨🇭CHF: 0.04% 🇪🇺EUR: -0.05% 🇯🇵JPY: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qsrBgSzbb9
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 2.48% France 40: 1.56% FTSE 100: 1.37% US 500: 1.27% Wall Street: 1.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/U88jwizBUy
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.62% Gold: -0.43% Silver: -0.80% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/E0JIHB34kq
Copper Prices Could Offer Best Coronavirus-Recovery Steer

Copper Prices Could Offer Best Coronavirus-Recovery Steer

2020-04-28 04:00:00
David Cottle, Analyst
Share:

Copper Prices, Global Coronavirus Recovery Path, Talking Points:

  • Copper prices have risen from their March lows as the global economy struggles to reopen
  • But they’ve done so less impressively than stock market more broadly
  • As a very ‘real world’ indicator, they merit close watching

As the world staggers out of induced economic coma forced on it by the coronavirus, crude oil prices may offer on overly gloomy prognosis of its chances. Copper could rather promise the better steer.

While no one thinks that contagion will be anything other than a hammer blow to the global economy, it probably isn’t as hard a one as you might pardonably think if you merely eyed crude oil’s collapse.

US Crude Oil Prices, Monthly Chart

While an obvious global bellwether, the oil market has its own dynamics. And the actions of producers since March, when production cuts could not be agreed, to the present day, when they have been but too late to stop a petroleum glut sloshing round a locked-down world with no use for it, are playing a huge part in the daily oil market fire sale.

Oil - US Crude BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 15% 0% 9%
Weekly -1% -11% -5%
What does it mean for price action?
Get My Guide

Copper meanwhile is a key industrial metal and, while it has its own dynamics too, may be a purer indicator of world chances. And sure enough, in the copper world things do look much better than they did.

On the London Metal Exchange prices have risen to six-month highs this week as investors look to the partial reopening of some national economies. Benchmark three-moth copper has hit $5,260/tonne, it’s best showing since March 17. The most-traded June contract on the Shanghai Futures Exchange has made 42,880 Yuan ($6,058.15), a near-two week high.

The bad news is that, while copper may be a more optimistic market than crude oil, it’s still less optimistic than US equity. Copper prices’ gains are much less impressive than US stocks big bounce from their March lows.

Copper Prices Could Offer Best Coronavirus-Recovery Steer

S&P 500 vs Copper prices daily chart created with TradingView

Indeed, equity markets broadly have recovered markedly, buoyed up by a range of monetary and fiscal stimulus programs put in place around the world.

These programs have been successful in reassuring financial markets that a calamitous ‘credit event’ such as the subprime implosion of 2008 can be avoided. And that’s important. However, they’ve clearly been less so in reassuring investors in the real economy that things will be returning to normal anytime soon. Hence copper’s lag.

Between the overwhelming gloom of the oil markets and the infectious optimism of the stock exchanges probably lies a more nuanced truth. The copper price could be much closer to it.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.