Copper prices are turning sharply lower ahead of the FOMC today with the futures market down around 2% so far on the day. The sell of is likely profit taking ahead of the event given the bullish USD risks seen today. Heavy dovish expectations into the event leave USD vulnerable to a squeeze higher if the Fed fails to fully satisfy expectations. As such, risk assets such as copper are vulnerable to a downside squeeze, particularly given the almost 9% recovery rally we’ve seen in recent weeks. Alongside positioning adjustment ahead of the FOMC, copper prices are also suffering from elevated supply expectations. Chile, ... (full story)