Copper Fundamental Forecast – June 30, 2016

The weaker U.S. Dollar and demand for higher risk assets helped drive copper prices higher on Wednesday. September Comex High Grade Copper futures finished at 2.1895, up 0.0140 or +0.64%. The rally took the market to its highest level since May 5.

Copper climbed to its highest level in nearly eight weeks, bolstered by the softer dollar and fading fears about Britain’s vote to exit the European Union.

Traders seem to be ignoring the Brexit issue and are now focusing on the fundamental data. Although some investors feel the supply-demand situation points to higher metal prices over the course of this year, some analysts are divided about whether the copper market would see more supply from mines in coming months. Demand is positive, but it may not be enough to offset the supply. This could lead to a sideways trade over the longer-term.

Short-term, the copper market looks bullish especially on the technical side of the equation. Although the market is currently testing the retracement zone of its four month range, the upside momentum appears to be strong enough to drive the market above the 2.2000 level. However, concerns about oversupply could limit gains as the market nears the April high at 2.3060.

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.

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Thursday, June 30, 2016                              

Government Bond Auctions

Jun 30 11:10 Italy Holds bond auction