This week saw data from the UK surprise positively and the severally-oversold pound bounced back sharply, while the dollar fell across the board as the Fed watered down rate hike expectations in the minutes of the FOMC’s last meeting and after some weakness in US data was observed, causing the EUR/USD to climb to its best level since 24 June.
Copper, along with several of the other principal base metals fell sharply this week as a resurgent US dollar drove many commodities lower, with both gold and silver also selling off strongly. For the base metals market it was Nickel which saw the most dramatic price moves, falling over 5.5% with copper and zinc both falling over 2 %, with tin one of the few commodities closing higher.
Ahead of Janet Yellen becoming FED chair focus has turned to the USD dollar and whether it is now set for a period of sustained strength, and one reason offered by dollar bulls as to why it still hasn’t taken off is because the euro is even stronger!
