FX Investors See Metals as a Way to Get In on Biden’s Trillions
- Stimulus plan’s focus aids Australia, Canada, Chile currencies
- AGF, Brandywine, Manulife ride ‘supercycle’ for commodities
A train transporting copper cathodes in the Atacama desert, Chile.
Photographer: Laura Millan/BloombergThis article is for subscribers only.
As lawmakers wrangle over President Joe Biden’s latest trillion-dollar stimulus package, currency investors are already picking the winners of the infrastructure spending boom that the plan is likely to unleash.
They’re focusing on countries that are major sources of the copper needed to bolster the electrical grid, the iron ore for steel rebar, and nickel for battery-powered vehicles. For those who don’t typically invest directly in metals, foreign exchange is a prime way to express these views. The expectation is that certain commodity-linked currencies will get an extra jolt on top of the support from the broader reflation trade that’s dominated markets for months.