FX.co ★ Copper Slips Amid Strong Dollar

Copper futures slipped to about $5.78 per pound on Thursday, paring gains from the previous session as the US dollar strengthened on the back of solid economic data and hawkish signals from the Federal Reserve. Minutes from the Fed’s January meeting showed a divided committee: some policymakers indicated that rate cuts would be appropriate if disinflation continues, while others argued for keeping rates elevated for longer and even highlighted the risk of additional tightening should inflation prove persistent.

In response, traders slightly scaled back expectations for the pace of Fed easing this year, though markets still price in two 25–basis point cuts before year-end. Copper prices also came under pressure from rising exchange inventories and subdued demand, with economic activity in top consumer China muted during the week-long Lunar New Year holiday.