Rates were left unchanged by the Fed – as was widely expected – but hawkish language from the central bank sent the dollar higher as it hinted at another rate increase this year.
“The Fed did not surprise, but the underlying signal was more hawkish than markets expected, shooting the dollar higher,” ANZ Research noted.
The three-month lead price was the only base metal to be trading in positive territory this morning, trading at $2,462 per tonne. The metal is finding support from supply tightness amid continuing environmental inspections in China.
“Lead supply is still under pressure due to the environmental inspections and shortage of concentrates, so it is unlikely that the supply tightness will ease in the short term,” China’s Galaxy Futures said.
Nickel prices have plummeted this morning after recovering yesterday; the three-month price is currently trading $300 per tonne lower.
Copper prices dip
Base metals prices
Currency moves and data releases