The markets are moving across several key areas this week, with copper, Salesforce, and EUR/USD each reacting to their own mix of supply, demand, and macroeconomic forces. Copper has surged to record levels as tightening global supply and shaky Chinese demand create a volatile but bullish environment. In equities, Salesforce continues to build momentum thanks to strong cash flow and rapid adoption of its AI-driven tools, even as questions remain about future growth consistency. Meanwhile, in currencies, the euro is climbing against the dollar as traders bet on upcoming Federal Reserve rate cuts, though economic risks on both sides of the Atlantic keep upside potential in check.
The markets are moving across several key areas this week, with copper, Salesforce, and EUR/USD each reacting to their own mix of supply, demand, and macroeconomic forces. Copper has surged to record levels as tightening global supply and shaky Chinese demand create a volatile but bullish environment. In equities, Salesforce continues to build momentum thanks to strong cash flow and rapid adoption of its AI-driven tools, even as questions remain about future growth consistency. Meanwhile, in currencies, the euro is climbing against the dollar as traders bet on upcoming Federal Reserve rate cuts, though economic risks on both sides of the Atlantic keep upside potential in check.
Copper Surges to Records as Tight Supply Meets Shaky China Demand
Copper is trading around $5.40 per pound on COMEX after reaching fresh record highs this week, reflecting strong upward momentum supported by a 7–8% monthly gain and an already impressive year-to-date rally. Prices continue to benefit from tightening visible inventories and frequent headlines about supply plans, production challenges, and potential disruptions across major mining regions. Traders are now focused on several key catalysts that could shape the next move, including China's manufacturing PMIs, updated positioning data from the CFTC—the U.S. agency that tracks futures market activity—and production guidance from major global miners, with many participants preparing for higher volatility as macro conditions evolve.
China Softens, Chile Tightens: Copper's Fundamentals in Focus
China's demand remains a key driver, with the official manufacturing PMI for November coming in at 49.2, still in contraction but showing slight improvement from October, and keeping attention on potential stimulus and industrial activity. On the supply side, Chile's October mine production fell 7% year over year to about 458 thousand tons, highlighting ongoing challenges in the world's largest copper-producing nation. In terms of producer outlook, Rio Tinto raised its 2025 copper output forecast to 860–875 thousand tons as Oyu Tolgoi ramps up, offering some relief amid global tightness. Meanwhile, Codelco and Glencore's plan to move forward with a new smelter in Chile aims to address medium-term processing bottlenecks rather than immediately boosting refined metal availability.
Copper Rally Faces Tight Supply and China Risks
Copper's outlook remains bullish but prone to sharp swings as inventories stay tight and China's economic data shows signs of stabilizing. Prices could climb further if Chile experiences more supply setbacks or if new smelting capacity takes longer than expected to come online, both of which would keep the market tight. On the other hand, weak Chinese manufacturing data or a rapid unwinding of trader positions after recent record highs could trigger sudden pullbacks. In the coming weeks, the key things to watch are China's December figures, updated CFTC positioning, and production guidance from major miners.
Salesforce Powers Ahead with AI Growth but Faces New Challenges
Salesforce is a global leader in cloud-based enterprise software, offering a wide range of tools that help businesses manage sales, customer service, marketing, analytics, and increasingly AI-driven workflows. Its subscription-based model provides steady recurring revenue, making its business relatively stable compared to traditional software companies. Salesforce serves customers of all sizes, from small businesses to large multinational corporations, and operates across many regions worldwide. With its large user base and extensive product lineup, the company is widely viewed as a key player in the enterprise cloud industry.
Salesforce Lifts Outlook After Strong Q3 Momentum
Salesforce delivered a solid Q3 fiscal 2026, reporting revenue of US$10.3 billion, which was up 9 percent from the previous year. Most of this came from its subscription and support business, which grew to US$9.7 billion. The company also generated strong cash flow, with operating cash flow rising to US$2.3 billion and free cash flow reaching US$2.2 billion, both showing healthy year-over-year increases. Salesforce returned US$4.2 billion to shareholders through buybacks and dividends, reflecting confidence in its financial position. Based on the strong quarter, management raised its full-year revenue outlook to between US$41.45 and US$41.55 billion, signaling expected growth of around 9 to 10 percent. The stock is currently trading near US$238.72. Overall, the quarter showed steady growth, strong cash generation, and positive guidance from management.
AI Momentum and Strong Cash Flow Power Salesforce's Growth
Salesforce has several positive factors supporting its growth outlook. The company delivered steady revenue progress in Q3, rising 9 percent year-over-year, while free cash flow jumped 22 percent, showing that the business is generating strong cash that can be used for reinvestment or returned to shareholders. Its long-term pipeline also looks solid, with future contracted revenue increasing about 12 percent, signaling ongoing demand from customers. Salesforce's newer AI-focused products, such as Agentforce and Data 360, are gaining momentum as well, with recurring revenue from these offerings more than doubling over the past year. On top of this, the company returned US$4.2 billion to shareholders through buybacks and dividends, which suggests management's confidence in the business and adds another layer of support for investors.
Key Risks That Could Slow Salesforce's Next Phase
Despite its strengths, Salesforce still faces a few notable risks. While 9 percent revenue growth is respectable, it is slower than what many investors expect from a major software company, especially compared to its faster growth in earlier years. Much of the company's future momentum now depends on how successfully it can expand its new AI products like Agentforce and Data 360; if adoption slows or customers take longer to fully commit, Salesforce's growth could fall short of expectations. On top of that, a weaker global economy could prompt businesses to reduce their software spending, which may impact new deals and contract renewals. Together, these factors create some uncertainty around how consistently Salesforce can maintain strong growth going forward.
Euro Advances on Fed Expectations
EUR/USD is trading near 1.165–1.167, recovering from recent lows as broad U.S. dollar softness supports the pair. The main driver behind this move is growing market confidence that the Federal Reserve is nearing rate cuts, which typically weakens the dollar and lifts EUR/USD. However, the European Central Bank remains cautious, and weaker eurozone growth limits how far the euro can rally on its own. Market sentiment leans mildly bullish, with traders watching the 1.1750 area, though momentum still depends heavily on upcoming U.S. data and central-bank signals. Technical indicators point to improving upside pressure, but analysts warn that stronger-than-expected U.S. economic releases or delayed Fed easing could push EUR/USD lower again. Overall, the short-term outlook is neutral-to-slightly bullish with potential toward 1.1700–1.1750, though pullbacks remain likely given ongoing economic uncertainties on both sides of the Atlantic.
Euro Rises as Dollar Softens
Markets expect the Federal Reserve to begin cutting rates soon, which puts downward pressure on the U.S. dollar and helps support EUR/USD. On the euro-area side, the European Central Bank remains more cautious, and the yield advantage still favors the U.S., which generally supports the dollar. At the same time, broader macro conditions such as elevated energy costs, uneven eurozone growth, and political uncertainties limit strong euro outperformance, meaning EUR/USD continues to react more to U.S. developments than to euro-specific strength, especially during periods of heightened global uncertainty and shifting risk appetite.
Euro's Climb Meets Fresh Risks
Looking ahead, several potential risks could derail further EUR/USD gains. If US economic data turns out stronger than expected or the Federal Reserve signals a pause or delay in rate cuts, the dollar could rebound and pressure the pair lower. On the euro side, weaker eurozone growth, rising energy costs, or renewed political and fiscal uncertainty could also cap any upside. Overall, the outlook remains cautiously neutral-to-slightly bullish in the near term, with a possible move toward 1.1700–1.1750, though the likelihood of pullbacks remains high given ongoing economic uncertainties.