US Dollar Index Declines While Copper Prices Gain Strength Amid Market Volatility

Published: May 20, 2025 08:51

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[US Dollar Index Falls, Copper Prices Strengthen in Night Session amid Volatility]: On the macro side, Moody's downgraded the deposit ratings of several major banks, including Bank of America and JPMorgan Chase, citing the downgrade of the US credit rating last Friday, which led to a significant decline in the US dollar index and was bullish for copper prices. On the supply side, a large number of delivery warrants have not been released, resulting in tight market liquidity and low willingness among suppliers to sell at low prices. On the demand side, despite the decline in copper prices during the day, trading sentiment remained poor, with just-in-time procurement by some downstream consumers dominating. As of Monday, May 19, SMM's copper inventories in major regions across the country increased by 7,200 mt WoW to 139,200 mt, marking the second consecutive week of inventory buildup. Currently, the tight market liquidity provides some support for spot premiums, but factors such as inventory buildup and the expected release of warrants today are expected to curb spot premiums. In terms of prices, copper prices are expected to still have some upside room today.

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