FX.co ★ Copper Holds Losses as Dollar Strengthens

Copper futures steadied around $4.71 per pound on Wednesday, following a nearly 2% decline in the previous trading session. This downturn was influenced by a stronger US dollar, which gained strength from positive economic sentiment and strategic indications from the Federal Reserve. On Tuesday, Minneapolis Fed President Neel Kashkari noted that interest rates should remain constant until there is clearer insight into the potential impacts of increased tariffs on inflation. This reinforced the expectation of a prolonged pause in policy adjustments, providing additional support to the dollar. On the trade front, market sentiment improved as President Donald Trump decided to postpone a proposed 50% tariff on the European Union, alleviating immediate concerns over an escalation in global trade tensions. Although there is short-term pressure, analysts maintain a positive outlook for copper in the long term, pointing to ongoing structural supply constraints and the rising demand driven by the global shift towards electrification and renewable energy technologies.