Copper Fundamental Forecast – February 8, 2016

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Published: Feb 5, 2016, 12:58 UTC

Analysis and Recommendations: Copper dipped 15 points after surging to its recent highs. Copper is trading at 2.116. Copper prices are trading lower by

Copper Fundamental Forecast – February 8, 2016

Analysis and Recommendations:

Copper dipped 15 points after surging to its recent highs. Copper is trading at 2.116. Copper prices are trading lower by 0.3 percent at $4675/tonne owing to renewed strength in the DX ahead of keenly watched US NFP data. However, sharp losses were cushioned as comments from Federal Reserve Bank of New York President William Dudley that tighter financial conditions would be taken into account at the next policy meeting in March sparked hopes that the Fed might keep away from hiking rates in 2016. Also, decline of 1.7 percent in LME stocks supported gains.

Metals were buoyant as investors scrambled to close out bearish positions before the Lunar New Year holiday in China. The closure of major zinc mines late last year and the filing for Chapter 11 bankruptcy by U.S. producer Horsehead this week highlighted concern over tightening supply.

Zinc, mainly used for galvanizing steel, is the best-performing metal on the LME this year with a gain of nearly 7 percent. Chinese metal traders and merchants are likely to take a longer than usual Lunar New Year holidays this year, betting that spot demand for metals such as copper will stay weak at least in coming few weeks, industry sources said.

FxEmpire provides in-depth analysis for each asset 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 up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
AUD	Retail Sales (MoM) (Dec)		0.5%	0.4%
USD	Nonfarm Payrolls (Jan)		190K	292K
USD	Unemployment Rate (Jan)		5.0%	5.0%
CAD	Employment Change (Jan)		5.5K	22.8K
CAD	Ivey PMI (Jan)		50.0	49.9