Copper Fundamental Forecast – June 27, 2016

By:

Published: Jun 24, 2016, 10:56 UTC

Copper took a beating as the US dollar soared along with a run to safety by traders. Copper is down 51 points at 2.111 with traders only focusing on the

Copper Fundamental Forecast – June 27, 2016

Copper took a beating as the US dollar soared along with a run to safety by traders. Copper is down 51 points at 2.111 with traders only focusing on the UK exit and risk off trading. According to Reuters the prices of copper in London slipped as worries about global oversupply

Copper stocks held in London Metal Exchange warehouses in Asia are set to jump by around 50 per cent in the next month, as the metal is shifted out or diverted away from top consumer China, industry sources said last week.

China is expected to have exported out an “enormous” amount of copper in May, due to ample stockpiles in local inventories, a Singapore-based trader said. Government data is due out later in the session.

China’s copper production may rise yet further as fees that miners pay smelters to process spot metal continue to climb, said Hong Kong-based broker Argonaut Securities in a note.

In less than six months of 2016, China’s appetite for overseas acquisitions has already outgrown last year’s record, as deal-hungry mainland buyers chase global assets such as real estate, chemicals and high-end technology.

“The industrial metals sector is highly sensitive to changes in the dollar, with a stronger dollar following a Brexit expected to weigh on prices significantly,” analysts at Societe Generale S.A. said in a note to investors.

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.

Upcoming Economic Events that you should be monitoring:

Monday, June 27, 2016

Country	Name	Volatility	Previous
Spain	Parliamentary Election	2
NZ	Trade Balance (MoM)	2	292
NZ	Imports	2	4.01
NZ	Trade Balance (YoY)	2	-3.66
NZ	Exports	2	4.3
U.S.	Markit Services PMI	2	51.3
U.S.	Markit PMI Composite	2	50.9
U.S.	Dallas Fed Manufacturing	2	-20.8
U.S.	Gross Domestic Product Price Index	2	0.6
U.S.	Gross Domestic Product Annualized	2	0.8
U.S.	Personal Consumption Expenditures Prices	2	0.3
U.S.	Core Personal Consumption Expenditures	2	2.1
U.S.	S&P/Case-Shiller Home Price Indices	2	5.4
U.S.	Consumer Confidence	2	92.6