Copper dipped 3 points on the stronger US dollar as traders took advantage of this week’s climb to book profits. Copper prices fell falling under pressure
Copper dipped 3 points on the stronger US dollar as traders took advantage of this week’s climb to book profits. Copper prices fell falling under pressure in pre-bell trading ahead of the COMEX open as a climb in the US dollar discouraged holders of international currencies to purchase the metal. Copper was unable to shrug-off these losses, and ended up closing the session slightly lower.
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.
The euphoria in copper is based on value buying as copper is relative low priced compared to last year where it was trading around Rs 420 per kg. The rise in copper prices is on expectation that China will deliver more stimulus this year to boost growth in the face of economic slowdown. Lately, increasing copper stock in warehouse licensed by London Metal Exchange is threatening to put cap on the prices of copper as the increasing inventory is again hinting that supply may outweigh demand.
China’s copper imports jumped 22 per cent in the January to June period from a year ago according to China’s General Administration of Customs. This boosted the prospects of copper.
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Monday, July 25, 2016
Country | Name | Volatility | Previous |
JPY | Adjusted Merchandise Trade Balance | 2 | 269.8 |
JPY | Merchandise Trade Balance Total | 2 | -40.7 |
JPY | Imports (YoY) | 2 | -13.8 |
JPY | Exports (YoY) | 2 | -11.3 |
EUR | IFO – Expectations | 2 | 103.1 |
EUR | IFO – Business Climate | 2 | 108.7 |
EUR | IFO – Current Assessment | 2 | 114.5 |
USD | Dallas Fed Manufacturing | 2 | -18.3 |
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