As risk sentiment continued to firm, copper speculators added to their net length, strategists at TD Securities apprise.
Key quotes
“Our gauge of market sentiment suggests fearlessness, with our fear gauge improving substantially along with global contagion data. However, we continue to caution that while risk sentiment may be firming, commodity demand is not.”
“Our real time commodity demand indicator continues to hover near the lows, arguing against an immediate recovery in demand.”
“With copper firmly embedded in a downtrend, we suspect the hurdle rate for a reversal in trend will remain high, and instead, expect that prices could remain under pressure in the near-term.”
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