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Copper Fundamental Forecast – May 25, 2016

By:
Barry Norman
Published: May 24, 2016, 10:44 UTC

Copper gained 16 points to trade at 2.071 as commodities around the globe seemed to trade on the upside as oil stabilized and the US dollar gained on

Copper Fundamental Forecast – May 25, 2016

Copper gained 16 points to trade at 2.071 as commodities around the globe seemed to trade on the upside as oil stabilized and the US dollar gained on future rate increases. Analysts attributed the rise in copper futures to a firm trend at the domestic markets following pickup in demand from consuming industries and strength in metal at the London Metal Exchange.

Higher US rates could mean a stronger dollar, which has a negative effect on commodities demand because it makes them more expensive for buyers paying with other currencies. A Fed official said on Monday that US interest rates being kept too low for too long could cause financial instability — the latest in a line of policymakers hinting that a June rate increase is on the table.

“The market is now pricing in a significant possibility of a rate hike next month, depending on data,” said Peter Fertig, a consultant at Quantitative Commodity Research.

“The China situation isn’t as dire as markets think, but the strength we saw in March is unlikely to continue.” Latest China data souring the mood included copper exports that surged by 38 percent to 32,371 tonnes while refined imports rose by only 3.7 percent to 341,677 tonnes.

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.

copper

Upcoming Economic Events that you should be monitoring:

Wednesday, May 25, 2016

Cur. Event Actual Forecast Previous
  USD API Weekly Crude Oil Stock     -1.140M  
  NZD Trade Balance (YoY) (Apr)   -3,940M -3,380M  
  NZD Trade Balance (MoM) (Apr)   60M 117M  
  AUD Construction Work Done (QoQ) (Q1)   -1.5% -3.6%  
  EUR EU Finance Ministers Meeting        
  USD Goods Trade Balance (Apr)   -60.10B -56.90B  
  USD FOMC Member Harker Speaks        
  USD Services PMI (May)   53.1 52.8  
  CAD Interest Rate Decision   0.50% 0.50%  
  USD Crude Oil Inventories     1.310M  
  USD FOMC Member Kashkari Speaks        
  USD FOMC Member Kaplan Speaks  

Government Bond Auctions

Date Time       Country           Auction

May 25 11:03 Sweden Sek 1bn 3.5% 2022 & Sek 3bn 1% 2026 bonds

May 25 11:05 Norway Holds bond auction

May 25 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund

May 25 19:00 US Holds 5Yr Notes Auction, 2Yr FRN

May 26 11:10 Italy Announces details of bond auction

May 26 11:10 Italy Holds Zero-coupon/BTPei auction

May 26 17:20 Sweden Details of I/L auction on Jun 02

May 26 19:00 US Holds 7Yr Notes Auction

May 30 11:10 Italy Holds bond auction

Jun 01 10:30 Denmark Holds bond auction

Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl

Jun 01 11:30 UK 1.5% 2021 Gilt

Jun 01 17:20 Sweden Announces details of bond auction on Jun 08

Jun 02 10:30 Spain Holds bond auction

Jun 02 11:03 Sweden Holds I/L bond auction

Jun 02 11:50 France Holds bond auction

 

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