Copper Fundamental Analysis – November 26, 2015 – Forecast

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Published: Nov 25, 2015, 12:10 UTC

Analysis and Recommendations: Copper declined 24 points to trade at 2.045 giving back its gains as the greenback soared. Palladium dipped $1.25 to reach

Copper Fundamental Analysis – November 26, 2015 – Forecast

Analysis and Recommendations:

Copper declined 24 points to trade at 2.045 giving back its gains as the greenback soared. Palladium dipped $1.25 to reach 541.00. On November 23, copper reached new six and half year low price level due to the strong dollar and consistent demand concerns. In the LME, copper fell by 2%. The strong dollar is one of the main reasons for the fall in base metals. The strong dollar kept the pressure on copper and other base metals. The strong dollar kept them at lower price levels. The anticipation of a US interest rate hike in December made the dollar stronger. This makes the dollar-denominated base metals expensive. It causes the base metals to fall.

According to a report released by the International Copper Study Group the refined copper market entered into a supply surplus situation. According to the statistics, there were 80,000 metric tonnes of production surplus in August 2015. Considering the first eight months of 2015, the report showed a supply surplus of 70,000 metric tonnes. For the same period in 2014, there was a supply deficit of 460,000 metric tonnes. Considering this data, you can see the market’s transition from a supply deficit to a supply surplus.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
USD	API Weekly Crude Oil Stock	2.600M	-0.200M	-0.482M
JPY	Monetary Policy Meeting Minutes
AUD	Construction Work Done (QoQ) (Q3)	-3.6%	-2.1%	2.1%
GBP	BBA Mortgage Approvals	45.4	45.5K	44.5K
AUD	RBA Assist Gov. Debelle Speaks

Upcoming Economic Events that you should be monitoring:

Wednesday, November 26, 2015

Cur.	Event	Actual	Forecast	Previous
	United States – Thanksgiving Day
NZD	Trade Balance (MoM) (Oct)		-937M	-1,222M
NZD	Trade Balance (YoY) (Oct)		-3,370M	-3,200M
AUD	Private New Capital Expenditure		-3.0%	-4.0%
EUR	GfK German Consumer Climate (Dec)		9.2	9.4