FX investors see metals as a way to get into Biden’s trillions

(Bloomberg) – As lawmakers argue over President Joe Biden’s latest trillion-dollar stimulus package, currency investors are already picking winners in the infrastructure spending boom the plan is likely to spark. They focus on countries that are the main sources of the copper, which is needed to strengthen the power grid, the iron ore for steel rebars, and nickel for battery-powered vehicles. For those who don’t normally invest in metals directly, forex is an excellent way to express these views. The expectation is that certain commodity-linked currencies will get an extra boost in addition to the support from the broader reflation trade that has dominated the markets for months. Given the president’s $ 2.25 trillion limit, Tom Nakamura of AGF Management says he is adding an exposure to Canadian dollars while Jack McIntyre of Brandywine Global Investment Management has confidence in his …

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