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Quick Facts
- Copper futures made a record-breaking daily rise amidst escalating trade tensions.
- President Trump threatened to impose a 50% tariff on copper imports, sending shockwaves through the market.
- The surge in copper prices has significant implications for copper-producing countries, particularly Chile and Peru.
- The US dollar remained firm despite market volatility, while commodity-linked currencies consolidated.
Copper Powers to Record High on Trump Tariff Threat – 09 July 2025
The commodity market experienced a thrilling day today, with copper futures making a record-breaking daily rise amidst escalating trade tensions.
Copper’s Record-Breaking Run
Copper futures made their biggest daily rise to record high levels, driven by concerns over a potential tariff war between the US and its trading partners. The metal has been a prime target for tariffs, with many countries relying heavily on US copper exports. Trump’s threat to impose a 50% tariff on copper imports sent shockwaves through the market, leading to a massive surge in prices.
Copper futures skyrocketed by over 4.5% on the London Metal Exchange (LME), pushing the price to a record high of $7,442 per ton. This dramatic increase has significant implications for copper-producing countries, particularly Chile and Peru, which are among the world’s largest copper producers.
The Impact on Forex
The sudden increase in copper prices had a ripple effect on the Forex market, with many currencies experiencing significant fluctuations.
The US dollar, which is often viewed as a safe-haven asset, remained firm despite the market volatility. The currency’s resilience can be attributed to investors seeking refuge in the greenback amid the uncertainty surrounding global trade tensions.
The dollar’s strength had a positive impact on many of its major currency pairs, with the euro, pound, and Swiss franc all experiencing losses.
On the other hand, the commodity-linked currencies, such as the Aussie dollar and the Canadian dollar, which are heavily influenced by the price of copper, began to consolidate. The weakness in these currencies could be attributed to the uncertainty surrounding the tariffs and their potential impact on global trade.
RBNZ Holds Rates Steady
The Reserve Bank of New Zealand (RBNZ) made a significant announcement of its own today, keeping interest rates steady at 1.5% in its latest policy decision.
The decision was widely expected, given the RBNZ’s focus on promoting economic growth and stabilizing the currency. The New Zealand dollar, which has been under pressure due to the country’s reliance on dairy exports, reacted positively to the news, gaining ground against its major currency counterparts.
Trump Exhorts Powell to Cut Rate
In a surprise move, President Trump took to Twitter to urge Federal Reserve Chairman Jerome Powell to cut interest rates.
Trump, who has been vocal in his criticism of the Federal Reserve’s monetary policy, believes that lower interest rates would boost the US economy. The sudden intervention by the President has sent shockwaves through the market, with many investors speculating on the potential implications of a rate cut.
If implemented, a rate cut could weaken the US dollar, potentially leading to a rise in gold prices and a decline in the value of the dollar against major currencies.
FOMC Meeting Minutes Awaited
The anticipation is building ahead of the Federal Open Market Committee (FOMC) meeting minutes, which are set to be released later this week.
The minutes will provide valuable insight into the Fed’s decision-making process, particularly with regards to the potential rate cut. Market participants will be scrutinizing the minutes for any clues on the Fed’s future monetary policy decisions, which could have significant implications for the Forex market.
