Assuming $US strength is about to unfold we would usually anticipate that commodity prices struggle, just as we saw on Friday simply because they are priced in $US, however if the FX move is based on an economic recovery declines are likely to be less dramatic. Conversely we must remain mindful that the likes of copper have more than doubled since March 2020 on the combination of a weak $US and a strong post COVID economic recovery fuelled by enormous stimulus which by definition leaves room for “washouts” to the downside.
MM remains a keen buyer of copper exposure ~8-10% lower
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