This is the third in a series of articles looking at the top 10 most important drivers behind some of the main commodity futures prices. Episode 3 looks at copper.
1) US dollar
Like most internationally traded commodities copper is priced in US dollars. At its most basic a decrease in the value of the US dollar relative to a commodity buyer’s currency means that the purchaser will need to spend less of their own currency to buy a given amount of the commodity. As the commodity becomes less expensive demand for the commodity rises, resulting in an increase in the price and vice versa.