https://www.economist.com/finance-and-economics/2020/06/11/the-reasons-behind-the-spectacular-rally-in-metal-prices
There is a speculative element to the rise in metal prices, too. Buying or selling copper futures is a popular way to express a view about the world economy. Indeed copper can be all about belief, says Max Layton of Citigroup, a bank. Many of the bets laid on it are by trading algorithms, which mechanically respond to financial signals that have worked well in the past. The dollar, which has fallen by 6% against a basket of currencies since March, is usually part of the semaphore. A weaker dollar allows for easier terms of finance in emerging markets. Anything that helps emerging-market economies is generally good for commodity prices. So the algorithms buy.
![](http://investorshub.advfn.com/uimage/uploads/2020/6/14/irpdvusdcad_jjjn11_11y_135_wedge.jpg)
![](http://investorshub.advfn.com/uimage/uploads/2020/6/14/igvfiusdcad_jjjn12_2y_w_LT.jpg)
A pattern in markets is that a lot happens by rote. China’s response to a weak economy is to build; investors’ response to the Fed’s easing is to buy stocks; the algorithms’ response to a weaker dollar is to buy commodities. Higher prices beget higher prices. The sceptics, the too-sooners, note that this also works in reverse. Quite so. But the momentum is now with the believers.
![](http://investorshub.advfn.com/uimage/uploads/2020/6/14/kdssvcopper_jjjn12_ipo_w_usdcad_board.jpg)
nowwhat
Recent USDCAD News
- U.S. Dollar Weakens After Soft Retail Sales Data • RTTF2 • 06/18/2024 01:38:20 PM
- U.S. Dollar Lower Against Majors • RTTF2 • 06/17/2024 03:54:29 PM
- U.S. Dollar Mixed Amid Cautious Mood • RTTF2 • 06/13/2024 01:58:53 PM
- U.S. Dollar Rebounds As Fed Signals Only One Rate Cut This Year • RTTF2 • 06/12/2024 04:08:13 PM
- Commodity Currencies Rise, Focus On U.S. CPI Data, Fed Meeting • RTTF2 • 06/12/2024 05:13:02 AM
- Canadian Dollar Advances Against Most Majors • RTTF2 • 06/12/2024 03:52:59 AM
- Canadian Dollar Edges Up To 1.4765 Against Euro • RTTF2 • 06/12/2024 02:46:22 AM
- U.S. Dollar Rises Against Majors • RTTF2 • 06/10/2024 03:55:14 AM
- U.S. Dollar Seeing Modest Strength Following Upbeat Service Sector Data • RTTF2 • 06/05/2024 04:30:34 PM
- Canadian Dollar Drops As BoC Cuts Interest Rates • RTTF2 • 06/05/2024 12:42:32 PM
- U.S. Dollar Falls Amid Rate Cut Expectations • RTTF2 • 06/04/2024 03:26:37 AM
- U.S. Dollar Falls Against Majors • RTTF2 • 06/04/2024 02:33:13 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM
ECGI Holdings Announces LOI to Acquire Pacific Saddlery to Capitalize on $12.72 Billion Market Potential • ECGI • Jun 13, 2024 9:50 AM
Fifty 1 Labs, Inc. Announces Major Strategic Advancements and Shareholder Updates • CAFI • Jun 13, 2024 8:45 AM