Could the PBOC be about to cut rates?

copper chart

Copper has made a big move to the upside this week and is back to the best levels since May.

You can put together a multitude of reasons why, especially on a day when the S&P 500 is up 69 points to 4432. Covid is fading and governments aren't pulling back on spending. In the long term, massive spending is coming on green energy and that's a straight play on copper.

In the short-term though, the timing is still curious.

One reason could be the PBOC. ANZ was out with a note this week that said a 50 basis point cut in the RRR could come as soon as today. Alternatively we could see a targeted MLF.

That's something to keep in mind for copper, Chinese equities and commodity currencies along with the entire global risk trade.