Copper Fundamental Forecast – July 22, 2016

By:

Published: Jul 21, 2016, 12:10 UTC

Copper gained 2 points to trade at 2.256 edging up to its highest level as US housing data printed stronger than expected. Copper is a major commodity

Copper Fundamental Forecast – July 22, 2016

Copper gained 2 points to trade at 2.256 edging up to its highest level as US housing data printed stronger than expected. Copper is a major commodity used in home construction. Copper rose towards $5000 a tonne on Thursday, finding some support as the dollar eased from a four-month high, and after China’s copper imports remained solid in June.

The dollar eased back from a four-month high against the euro ahead of a European Central Bank policy meeting later in the day.

Price gains across metals this year, ranging from a 6-percent rise in copper to a 40-percent surge in zinc, have been bolstered by a recovery in oil prices and a shallower rate rise path in the United States following the Brexit, said analyst Lachlan Shaw of UBS in Melbourne. However, gains may prove short-lived, he added.

“We can see this holding up the prices. But as for the demand outlook, we think it will sequentially weaken in the second half.”

Oil prices, up by nearly a quarter this year, have lifted production and transport costs for miners, while a softer dollar raises the purchasing power for buyers of commodities paying with other currencies…

China’s refined copper imports for June rose by 19.7 percent on the year to 305,304 tonnes, while refined copper exports also jumped by 192.4 percent to 42,596 tonnes, customs data showed.

FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.

Upcoming Economic Events that you should be monitoring:

Friday, July 22, 2016

Major Market Events
Country	Name	Volatility	Previous
JPY	All Industry Activity Index (MoM)	2	1.3
EUR	Markit PMI Composite	2	54.4
EUR	Markit Manufacturing PMI	2	54.5
EUR	Markit Services PMI	2	53.7
EUR	Markit Services PMI	2	52.8
EUR	Markit Manufacturing PMI	2	52.8
EUR	Markit PMI Composite	2	53.1
CAD	Retail Sales (MoM)	2	0.9
CAD	Consumer Price Index (MoM)	2	0.4
CAD	Consumer Price Index Core (MoM)	2	0.3
CAD	Consumer Price Index Core (YoY)	3	2.1
CAD	Consumer Price Index – Core (MoM)	2	0.4
CAD	Consumer Price Index (YoY)	3	1.5
USD	Markit Manufacturing PMI	2	51.3
USD	Baker Hughes US Oil Rig Count	2