What's The Use Of Copper In Market Analysis?
Copper is often refered to as Dr. Copper as it's a good barometer of the overall 'health' of the economy.
We interpret and explain price moves in real-time, 24 hours a day. Our team of analysts produce text, video and audio commentary.
You understand the markets and trade with confidence. Learn more at our website here: https://bit.ly/2HFykNd
Just had a question from Sakim about asking what is the purpose of copper?
Now, one of the reasons we look at copper in our intermarket analysis is that copper has a particular use around the world. Whenever the world is growing and the global economy is expanding, then the demand for copper increases because electronics, wiring and the wide range of industrial and manufacturing processes need copper.
So, a growing economy increases the demand for copper and therefore the price. So, when the market is risk-on and optimistic about global growth, we see copper prices rise. So, if you want a clue about the market's view on the state of global growth, you can have an appointment with doctor copper because it gives you a good consultation about the health of the global economy.
So, that's why we look at copper prices and many analysts look at copper prices as a indicator alongside other markets for when the market is going into a risk-on mood.
If you find this content helpful, you’ll love Forex Source.
There’s a link below were you can learn more about it