US stocks wavered alongside Treasury yields, as markets continued to assess the impact of monetary policy on macroeconomic prospects. Still, the dollar strengthened once again, surpassing 106.50, marking the fourth consecutive day of gains. While we remain constructive about the strength of the greenback, we believe that it is overbought due to the rapid growth seen in recent days. Therefore, we expect a minor correction in the near term before finding robust support at 105.50, where we see its fundamental value. From the macroeconomic standpoint, US factory orders rebounded in August, suggesting resilient investment despite elevated borrowing costs.
Base metals complex edged lower today, driven in large by dollar strength. Copper was seen testing the support level at $8,100/t, struggling to break below it completely and closing at $8,114/t at the time of writing. Likewise, nickel tested a robust support level at $18,555/t before jumping back to $19,003/t. Aluminium held firm within its trading range, settling at $2,238/t. Both lead and zinc weakened, closing at $2,153/t and $2,476.50/t, respectively.
Oil futures rallied after US crude stockpiles dropped to summer 2022 lows, further highlighting tighter market fundamentals; WTI and Brent are now at $93/bl and $96/bl. Gold and silver continued to weaken to $1,881/oz and $22.50/oz, respectively.
All price data is from 27.09.2023 as of 17:30
