FX.co ★ Copper Edges Higher as Fed Decision Eyed

On Wednesday, copper futures climbed above $4.80 per pound, recovering from losses sustained in the previous session. This uptick came as investors adjusted their positions ahead of the US Federal Reserve's forthcoming policy announcement. While it is broadly anticipated that the Fed will maintain the current interest rates, attention remains fixed on its future guidance amid persistent tariff uncertainties and geopolitical tensions. Expectations for further Fed rate cuts within the year have diminished due to ongoing trade disputes and rising inflation concerns, exacerbated by the upward trend in oil prices. Geopolitically, President Donald Trump intensified hostilities with Iran, demanding the country's "unconditional surrender" and threatening action against Supreme Leader Khamenei. In related market analysis, a Westpac economist suggested that the tight conditions within the copper market might ease soon, potentially leading to a price correction. Furthermore, analysts have cautioned that any official declaration of US tariffs on copper could provoke a "sell-the-news" reaction within the market.