Is Copper set for further falls in the near term?

Copper has seen a strong sell-off this week as concerns rise about a faster than expected increase in US rates. The prospect of the US being vaccinated by May has sent bond yields moving higher and if that surge higher in yields continue then risk-off trading should remain.

If the Non-Farm Payroll data comes in string today that could cause a further surge higher in US bond yields. If that is the case then commodities and equities could have a very bad close into the weekend. Also, Copper has been weak over the last 10 years around this time of year losing value 8 times between 05 March and April 01. Although medium-term copper should find buyers this could be the pullback that has been due for some time.

Trade Risks: If the Fed implements yield curve control or some other device to control rising yields that will invalidate this outlook and allow equities and commodities to keep rising.