Copper Fundamental Forecast – May 27, 2016

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Published: May 26, 2016, 10:30 UTC

Copper continued to hold on to gains today but dipped a bit off its highs of the day to trade at 2.1150 up by 13 points as the US dollar weakened and

Copper Fundamental Forecast – May 27, 2016

Copper continued to hold on to gains today but dipped a bit off its highs of the day to trade at 2.1150 up by 13 points as the US dollar weakened and global commodities climbed. The odds of a U.S. hike next month have risen to 34 percent, up from 12 percent at the end of April, and for July the chances are now better than even, Fed Funds futures show. The dollar has risen too, with a gauge of the U.S. currency headed for the biggest monthly gain since January 2015.

Market analysts said increasing of positions by participants in tandem with a firming global trend where copper and other industrial metals rose with oil amid speculation the world economy will cope with the impact of higher us interest rates, influenced copper prices at futures trade.

Copper prices rose on Wednesday to their highest level in a week as investors bought futures to close positions betting on price falls, unsure about the short-term market direction due to mixed signals from top metals consumer China. The move accelerated after the U.S. market opened, as speculators there also scrambled to cover, traders said. Investors with short copper positions profited from a slide in prices of 11 percent from late April until last week, when the metal hit three-month lows.

Also supporting copper were LME warehouse cancellations of about 18,000 tonnes over the past two days. Cancellations occur when owners of metal in LME depots give notice they are preparing to ship material, reducing the amount of metal available to the market. The dollar index dipped, taking a breather after hitting a two-month peak on the back of robust U.S. housing data which supported the case for a rise in U.S. interest rates in the near term. (Commodities Online)

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Upcoming Economic Events that you should be monitoring:

Friday, May 27, 2016

Cur.	Event	Actual	Forecast	Previous
AUD	RBA Assist Gov Debelle Speaks
JPY	National Core CPI (YoY) (Apr)		-0.4%	-0.3%
JPY	Tokyo Core CPI (YoY) (May)		-0.4%	-0.3%
USD	GDP (QoQ) (Q1)		0.9%	0.5%
USD	GDP Price Index (QoQ) (Q1)		0.7%	0.7%
USD	Michigan Consumer Expectations		86.6	87.5
USD	Michigan Consumer Sentiment (May)		95.4	95.8
USD	Fed Chair Yellen Speaks
USD	Baker Hughes U.S. Rig Count			318