Strong US dollar weighs heavily, commodity prices turn to fall

After two sessions of increase and reaching an 8-month peak, the MXV-Index turned down nearly 0.7% to 2,335 points as the USD recovered strongly.

Oil prices turned weaker as the US dollar strengthened. Source: MXV

This put pressure on commodity prices, prompting profit-taking, with a clear impact on crude oil and base metals, with copper and oil under heavy pressure.

According to the Vietnam Commodity Exchange (MXV), WTI oil price decreased by 0.8% to 60.56 USD/barrel, while Brent oil lost 0.77% to 64.34 USD/barrel.

Copper prices extended their decline to the fourth consecutive session. Source: MXV

In the same direction, the metal market also weakened, COMEX copper price decreased 2.4% to 10,909.6 USD/ton, LME copper lost 1.8% to 10,663.5 USD/ton, marking a prolonged decline.

MXV believes that in addition to the impact of the USD, the copper market is also under great pressure from declining production activities in China - the world's largest copper consumer, when the PMI index of the country's manufacturing sector has dropped to 49 points.

In addition, a change in Beijing's electric vehicle industry strategy has dampened expectations for long-term demand.

However, top producer Codelco has just cut its 2025 production forecast, while Glencore and Anglo American have reported production declines, setting the stage for a potential medium-term shortage. As a result, MXV said the metal's decline could be limited if supply conditions continue to deteriorate.

Source: https://hanoimoi.vn/dong-usd-manh-de-nang-gia-hang-hoa-quay-dau-giam-722149.html