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Copper Fundamental Forecast – July 26, 2016

By:
Barry Norman
Published: Jul 25, 2016, 10:59 UTC

Copper added 4 points as commodities rallied over the board and the US dollar dipped a bit. Strong housing data helped support copper demand. Copper

Copper Fundamental Forecast – July 26, 2016

Copper added 4 points as commodities rallied over the board and the US dollar dipped a bit. Strong housing data helped support copper demand. Copper prices rose in July on expectations that policymakers’ efforts to spur economic growth will increase demand for the metal.

Expectation of a new round of infrastructure spending in China is giving investors reasons to bet on the metal.

In June, China imported 420,000 metric tons of unwrought copper and copper products, up 20.3% from June of last year. For the first half of the year imports increased 21% compared to the same period in 2015. The growth in imports has helped support metal prices, too. However, there are different opinions on whether those imports are actual demand or just stockpiling into warehouses.

So the whole metal complex is performing well, investors are optimistic that they’ll see more stimulus coming from China and copper imports are strong. This all sounds bullish for copper prices this month but copper only recently passed that 5,000-$5,100/mt level that it has failed to overcome several times this year.

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Upcoming Economic Events that you should be monitoring:

Tuesday, July 26, 2016

Country Name Volatility Previous
NZD Imports 2 4.22
NZD Exports 2 4.57
NZD Trade Balance (YoY) 2 -3.633
NZD Trade Balance (MoM) 2 358
GBP Inflation Report Hearings 3
USD S&P/Case-Shiller Home Price 2 5.4
USD Markit Services PMI 2 51.4
USD Markit PMI Composite 2 51.2
USD Consumer Confidence 2 98
USD New Home Sales Change (MoM) 2 -6
USD New Home Sales (MoM) 2 0.551

Government Bond Auctions

Date/Time Country Type

Jul 25 11:30 Germany Eur 1.5bn Jul 2017 Bubill

Jul 25 17:20 Italy Announces details of bond auction

Jul 26 11:10 Italy Holds zero-coupon/BTP€i auction

Jul 27 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund

Jul 28 11:10 Italy Holds bond auction

 

 

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