US Dollar Index Hits Two-Year High; Copper Prices Under Pressure Amid Weak Consumption [SMM Copper Morning Comment]

SMM January 2 News: Overnight, LME copper opened at $8,855/mt, initially reaching a high of $8,883/mt before trending downward, hitting an intraday low of $8,757/mt. It then fluctuated slightly towards the close, finally settling at $8,781.5/mt, with open interest reaching 263,000 lots. SHFE copper was closed for the holiday. Macro side, the US Fed maintained high interest rates, and the US dollar index reached a two-year high, weighing on copper prices. Domestically, starting January 1, personal housing provident fund loan interest rates were lowered. Fundamentals side, pre-holiday market trading was noticeably quiet, with both quotations and inquiries inactive, but a certain recovery is expected post-holiday. Overall, post-holiday consumption is expected to improve to some extent, but with the US dollar at a two-year high, copper prices are likely to face limited upside today.