Copper Rises As FOMC Expected to Keep Rates Low

Copper recovered from the biggest decline in two weeks on speculation the Federal Reserve will commit to keeping interest rates low to support economic growth.

Benchmark lending rates in the U.S., the world’s second-biggest copper consumer, will rise in June, according to 45 percent of 53 economists surveyed by Bloomberg News. The Fed’s decision on interest rates is due at 2 p.m. in Washington. Chilean copper producer Antofagasta Plc said on Wednesday that it’s “optimistic” on the outlook for copper prices.

“There could be a dovish surprise from the Fed,” said Robin Bhar, an analyst at Societe Generale SA in London. “Maybe a delay to interest rate increases, which would be supportive for base metals.”

Copper for delivery in three months advanced 0.3 percent to $5,439 a metric ton as of 1:37 p.m. on the London Metal Exchange. All of the six main industrial metals on the LME rose, except lead.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza