METALS: Copper Gets A Nudge Higher As Trump Confirms 50% Tariff
The range overnight for the HGU5 contract was 542.50 - 573.05, Asia is currently trading around 562, +2.5%. President Trump has confirmed his plans this morning to implement a 50% levy on Copper, effective August 1. “President Donald Trump said the US would begin levying a 50% tariff on copper imports from Aug. 1, confirming a move that will batter producers of everything from automobiles to homes and appliances who rely on the industrial metal.” - BBG
- The LME cash market closed overnight around 9652.00.
- (Bloomberg) - “Copper prices were steady Tuesday as a jump in inventories signaled that a squeeze on the London Metal Exchange might be easing. Copper stockpiles rose by the most since February on the LME, boosted by deliveries into South Korean ports.”
- “Copper traders are looking to shift deliveries into Hawaii and Puerto Rico to cut shipment times due to Donald Trump's plan for 50% tariffs.” - BBG
Fig 1 : Copper(HGN5) Hourly Chart
Source: MNI - Market News/Bloomberg
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MNI: CHINA PBOC CONDUCTS CNY198.6 BLN VIA 7-DAY REVERSE REPO TUES
- CHINA PBOC CONDUCTS CNY198.6 BLN VIA 7-DAY REVERSE REPO TUES
JPY: JPY Crosses - JPY Bulls Being Challenged In The Crosses
US stocks continue to find demand for now on dips, the S&P looks to be turning its attention back to the all time highs. This would be very frustrating for the JPY Bulls as the JPY starts to come under pressure as a result in the crosses.
- EUR/JPY - Overnight range 164.55 - 165.21, Asia is trading around 165.10. EUR/JPY is now pressing up against its resistance that has held the whole year, a sustained break above 165.00 could signal the potential for this to move higher and begin an uptrend.
- GBP/JPY - Overnight range 195.45 - 196.07, Asia trades around 195.95. GBP/JPY is challenging the multiple tops this year just above 196.00, a sustained break above here and the focus will turn to the 200 area.
- NZD/JPY - Overnight range 87.13 - 87.54, Asia is currently dealing 87.50. The pair is attempting to push higher this morning and like the other JPY crosses is eyeing some important resistance. A sustained move back above 88.00 would turn the focus back to the 90.00 area.
CNH/JPY - Overnight range 20.0415 - 20.1500, Asia is currently trading around 20.1200. CNY/JPY has not bounced as much as the others, a sustained break above the 20.60 area would get JPY longs worried.
Fig 1 : EUR/JPY Daily Chart
Source: MNI - Market News/Bloomberg Finance L.P
CNH: USD/CNH Fixing Edges Lower, Error Term Stays Negative
The USD/CNY fix printed at 7.1840, versus a Bloomberg market consensus of 7.1870.
- Today's fixing delivered a fixing error of -30pips. The actual fix was 15pips below yesterday's outcome. We remain just above recent lows in terms of the fixing outcome (7.1833 recorded on May 26).
USD/CNH is a little lower in the first part of Tuesday dealings, last near 7.1800. This is close to intra-session lows from Monday.
