Base metals traded on the London Metal Exchange had all closed up by the afternoon kerb on June 18 after the potential US Federal Reserve interest rate cuts inspired a bullish sentiment.
The optimism for the complex may be short lived however, because market consensus has already deemed this flurry of activity as a short-covering exercise before the US Fed and Federal Open Markets Committee (FOMC) make announcements on Wednesday June 19. "Metals prices are reacting positively today, as if the US-China trade deal has been agreed but this is merely a short-term frenzy based on rate-cut expectations. Beware - this is another bull trap," Fastmarkets...