It seems like US-China trade war has been spreading its wings. President Trump on Friday approved doubling of Steel and Aluminium tariffs on Turkey suggesting that trade war is on and we shouldn’t expect immediate relief.

President Trump tweeted on Friday morning “I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!”

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Looking at currency market today, we saw all global currencies experience a sharp decline that compared to dollar. Most affected currency was Lira. Most investor now wait for numbers from US, hoping to see some decline in dollar index.

We have seen a huge impact of trade war on base metals and this might continue. Looking at international markets, all base metals are trading low.

Intraday Copper chart - Generatebucks.com

 Due to fall in India rupee to 69.58 this morning, we saw an upside momentum on MCX. Looking at trade avenues for today in base metal pack, I would suggest avoid holding intraday positions.

Copper

As mentioned, we could definitely see an upside momentum today but it is advisable to initiate long positions above 423 with SL of 420 and target of 427 for this week. I foresee Copper trading sideways the entire week till we could a full blown strike at Escondida mines.

Aluminium

Based on supply concerns and increase in demand, Aluminium looks best among all base metals. It has lot of scope and so initiating long positions right now will be great.
Buy Aluminium at 143-144 for target of 147 and SL of 141.