Copper slips as strong US jobs data bolster Fed hike expectations

  • US employers added 162,000 jobs in August.
  • Markets put September hike odds at roughly 58% to 60% after the report.
  • The Fed's September 15-16 decision follows the August CPI release on September 11.

Copper futures slipped to about $6.55 per pound on Monday after US employers added 162,000 jobs in August, exceeding consensus estimates of 56,000 to 65,000 and reinforcing expectations for further Federal Reserve tightening. Unemployment held at 4.1%, while June and July payrolls were revised higher by a combined 55,000. Markets raised the probability of a quarter-point September rate increase to roughly 58%-60%, from an estimated 49%-55% before the report, although analysts said the payrolls figure alone was unlikely to determine the outcome. The Fed's target range stands at 3.50%-3.75%, and Fed Chair Kevin Warsh has emphasized inflation's persistence above the 2% goal. Investors are focused on the August Consumer Price Index release on September 11, five days before the Fed's meeting. Copper remained near records amid supply constraints in Congo, Chile and Peru, while tariff uncertainty pushed Comex inventories to record levels. Oil's advance near the Strait of Hormuz added inflation pressure.

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