Commodities: Strengthening dollar weighs on oil and copper futures

The commodities complex saw widespread selling pressure on Tuesday as the US dollar continued to gain ground as expectations surrounding a prompt start to the Fed’s interest rate cycle continued to cristalise.
US Federal Reserve vice-chairman Stanley Fischer reiterated for a second day that the moment to remove the reference to the need to keep rates low “for a considerable time” from the Fed’s language was looming closer.

Better than expected figures on US construction spending may also have lent a helping hand.

Construction spending Stateside grew by 1.1% month-on-month in October (consensus: 0.6%), after an upwards revision to the previous month’s data.

Front month West Texas crude futures finished $2.36 lower at $67.59 on the NYMEX.

Three-month copper futures ended down 0.54% to reach $6,414 per metric tonne out on the LME.

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