US Dollar Index Hits Two-Month High, Copper Prices Expected to Face Resistance [SMM Copper Morning Comment]

LME copper opened at $9,630/mt overnight, fluctuated widely at the beginning and reached a high of $9,646.5/mt. It then fluctuated downward, hitting a low of $9,578.5/mt at the end of the session, before slightly rebounding to close at $9,619/mt, up 0.6%. Trading volume reached 15,000 lots, and open interest was 278,000 lots. The most-traded SHFE copper 2412 contract opened at 77,210 yuan/mt overnight, initially reaching a high of 77,280 yuan/mt before fluctuating downward to a low of 76,860 yuan/mt. It slightly rebounded at the end of the session to close at 77,030 yuan/mt, down 0.06%. Trading volume reached 22,000 lots, and open interest was 160,000 lots. Macro side, the NDRC will accelerate the research and revision of the expanded catalog of industries with foreign investment encouraged and formulate guidelines for optimizing and adjusting the layout of the state-owned economy. Nearly half of the incremental policies have been implemented, with more policies "on the way." Additionally, on the afternoon of October 22 local time, President Xi Jinping met with Russian President Vladimir Putin in Kazan, officially kicking off the BRICS summit. Furthermore, the US dollar index continued its upward trend, hitting a two-month high, which exerted some pressure on copper prices. Fundamentally, the arrival of goods increased, and copper cathode social inventory started to build up again. Meanwhile, high copper prices made it difficult for holders to stand firm on quotes, and consumption gradually cooled down after entering late October. Overall, the market expects more favorable policies, but in the short term, weak consumption is expected to suppress copper prices. Additionally, the US dollar index hit a two-month high and continued its upward trend, suggesting that copper prices are expected to face some resistance today.