London Metal Exchange three-month base metals prices were trading down over the morning on Wednesday September 23 after a consistently stronger US dollar hit a six-week high, effectively capping the retracement in some metals yesterday after Monday's US equities nosedive.
The US dollar index continued its uptrend, hitting a high of 94.25 during the morning before settling to trade most recently around 94.08. Nonetheless, the US dollar has been buoyed above 94 recently while the offshore yuan has fallen for two consistent days, which is capping Asian consumption.US and Asian equities were mixed this morning, but rather than trading in a directionless capacity, LME base metals were firmly down while the stronger dollar dictated trade."This morning's pull back is to be expected. With hindsight, August prices were high and everything was very rosy for LME base metals. The bulls looked to be winning and the rallies in metals looked unstoppable. But...