Copper Boosted by Ceasefire Hopes
Ceasefire Hopes Emerging
Copper prices are tentatively bid today with the futures market edging higher in the green, though still within the last week’s range for now. The move higher comes despite a firmer US Dollar today and heightened uncertainty over the trajectory of the Iran war. Reports over the weekend that Trump is considering a ground assault on Iran to take hold of key Iranian energy sites have been overtaken for now by rising hopes of a ceasefire. Trump extended the current embargo on attacking Iranian energy sites to allow negotiations to continue with Trump writing on X that Iran will allow 20 oil tankers through the Strait of Hormuz tomorrow as a gesture of goodwill.
Risk Sentiment Improving
This news is fuelling an uptick in risk sentiment today with traders hopeful that the two sides are finally showing signs of progressing towards some sort of peace deal. If we get any further positive news, this should see risk appetite continue to improve, pushing copper prices higher. However, if talks break down and particularly if we get any news that Trump is going ahead with a ground assault, this will see a heavy breakdown in risk assets with energy prices and USD pushing higher. As such, there is plenty of volatility risk to be navigated linked to incoming news flow near-term.
Technical Views
Copper
While still below the broken bull trend line, copper prices are now back above the 5.4415 level and with momentum studies turning higher, focus is on a continued recovery with 5.6260 the next resistance ahead of a retest of the broken trend line.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.