Dollar stays strong, yen weakens as US rate-cut expectations diminish

Market and Geopolitical Developments

  • 💵 Dollar steadied on Monday after biggest weekly gain since 2022
  • 📈 European policymakers signalled rate cut within a few months
  • 👉 Yen marked a 34-year low against the dollar
  • ⚔️ Escalating conflict in the Middle East affected financial markets
  • 🇮🇷 Iran warned of strike on Israel leading to symbolic attack
  • 🔮 Investors have slashed bets on Fed cuts and pushed back easing cycle
  • 📉 Euro recorded biggest weekly percentage drop since late September 2022
  • 💰 Sterling had largest weekly percentage drop since mid-July
  • 💹 China’s trade-weighted currency index hit a March 2023 high
  • 🪙 Bitcoin fell below $62,000 and lost $10,000 or 15% from highs

Currency Trends and Financial News

  • 💵 Dollar is strong
  • 📉 Yen is decreasing
  • 🇺🇸 US rate-cut bets are receding
  • 💵 Dollar remains strong against the Yen
  • 📉 Yen weakens as US rate-cut bets rise
  • 🇺🇸 US Federal Reserve expected to cut interest rates
  • 📊 Market reactions favoring the Dollar

Copper Trade Dynamics between Russia and China

  • 💰 Russian Copper Company (RCC) and Chinese firms are disguising new copper wire rod as scrap to avoid taxes and Western sanctions.
  • 🔄 The intermediary shreds the copper wire rod in Xinjiang, making it difficult to distinguish from scrap.
  • 🛃 Russia’s copper rod has a lower export duty than scrap, and China imposes different tariffs on rod and scrap imports.
  • 📊 Discrepancies between Chinese and Russian data suggest significant copper scrap exports from Russia to China.
  • 🛢️ Copper scrap from Russia is being sold as de facto copper rod to Chinese firms, but both parties deny direct export relations.
  • 🛠️ Shredding copper wire rod makes it easier to sell to Chinese manufacturers and avoid sanctions and financial scrutiny.
  • 📈 China’s increased imports of Russian copper scrap reflect a rise in monthly volumes, with discrepancies in official data reports.
  • 🔒 Legal obstacles do not prevent Chinese purchases of metal from Russian companies under Western sanctions, but financial risks remain.

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