In the realm of commodities trading, copper prices experienced a slight decrease on Friday. This can be attributed to the strengthening of the U.S. dollar, which was fueled by the rise in Treasury yields. However, the decline was limited due to optimistic expectations of additional stimulus measures taking place in China, the largest consumer of copper.
The correlation between copper prices and the U.S. dollar is significant, as a stronger dollar tends to put pressure on commodities priced in the currency. The increase in Treasury yields contributed to the strengthening of the dollar, making copper less attractive for investors. Nonetheless, the market showed resilience due to the hope that China would inject more stimulus into its economy. As the main consumer of copper, any indication of increased demand from China would soften the impact of the dollar’s strength on copper prices.
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