Concerned about the global economy? Don’t be, says Dr. Copper. Despite the recent slowdown in the U.S. economy and equity markets becoming a little wobbly, copper prices have been surging higher over the past three months following a lengthy 6-month consolidation.
Short covering from oversold levels lifted the GBP/USD from 1.2775 to a high so far of almost 1.2930. The euro/British pound currency pair's strong upward trend paused as the cross drifted lower to around 0.9200 while the GBP/JPY made back more than half of it sharp falls from the day before.
Despite this being a quiet session so far, we have seen the pound fall below 1.28 against the U.S. dollar while the euro strengthened thanks to the Eurozone flash PMI data, which were mostly stronger than expected. The data helped to boost expectations about tighter monetary conditions in the single currency bloc.
Thursday saw U.S. stocks suffer one of their worst sessions so far this year. The benchmark S&P 500 index closed 1.5% lower to represent its biggest one-day drop since May. The sell-off continued in Asia overnight and there was some follow-through in Europe this morning. U.S. index futures have drifted further lower on follow-up technical selling momentum as more bullish speculators have been forced to liquidate their positions.