Copper is often perceived to be the barometer for market conditions and therefore a significant fall in copper prices could remove speculative support from other metals.

What we've seen over the last couple of weeks with disruptions at copper mines has narrowed the opinion of whether the market is going to be in deficit or surplus. More and more people are thinking it's going to be in deficit this year.

It's only political factors that are now holding prices above $60. Iran, Nigeria and Venezuela are potentially affecting supply flow that is driving the rally and is still providing support.

With this week's stock announcement likely to show a fresh decline in gasoline, it adds to market fears caused by the switch to greener fuels.

The focus will be on payrolls, and the market is looking for a significant fall as we are still seeing the effects from Hurricane Katrina. It is worth holding long bond positions.

Copper prices fell because processors are reluctant to buy now, and demand on the spot market is not as strong as we'd expected.