Copper Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

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Published: Feb 6, 2016, 06:02 UTC

Weekly Analysis and Recommendations: Copper rebounded on Friday to see a weekly gain of 1.31% as the PBOC promised additional stimulus and support for the

Copper Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

Weekly Analysis and Recommendations:

Copper rebounded on Friday to see a weekly gain of 1.31% as the PBOC promised additional stimulus and support for the yuan ahead of the Lunar Holiday. Copper ended the week at 2.091. Copper reversed but held on to some gains on Friday after U.S. jobs data kept alive speculation about a U.S. rate hike later this year, boosting the dollar ahead of the Lunar New Year holiday in China.

The dollar index bounced back from a week of heavy losses after a mixed U.S. jobs report, which included a fall in the unemployment rate to 4.9 percent, the lowest since February 2008. A stronger dollar makes commodities priced in the U.S. currency more expensive for buyers outside the United States.

“That dollar weakness earlier this week really buoyed the metals complex and now some of that is coming off. There’s a bit of profit taking, closing out these long positions ahead of the weekend and the Chinese new year,” said an analyst at Sucden Financial.

Three-month copper on the London Metal Exchange closed down 1.2 percent at $4,630 a tonne, erasing similar gains in the previous session when prices hit the highest since Jan. 4 at $4,720 a tonne. Copper has rebounded 7 percent since hitting 6-1/2-year lows in mid-January.

Copper and other base metals, however, are likely to bounce back when the Chinese return from holidays, said Eugen Weinberg, head of commodity research at Commerzbank. Friday was the last trading session on ShFE before the holidays. It will resume on Monday Feb. 15.

FxEmpire provides in-depth analysis for each currency and commodity 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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


Date	Currency		Forecast
Feb 7	JPY	Current Account	1.59T
Feb 8	CAD	Building Permits m/m
	USD	Mortgage Delinquencies
Feb 9	AUD	NAB Business Confidence
	GBP	Trade Balance	-10.4B
	USD	JOLTS Job Openings	5.54M
	AUD	Westpac Consumer Sentiment
Feb 10	GBP	Manufacturing Production m/m	0.0%
Feb 11	CAD	NHPI m/m	0.3%
	USD	Unemployment Claims	287K
Feb 12	AUD	Home Loans m/m	2.9%
	EUR	German Prelim GDP q/q	0.3%
	EUR	Flash GDP q/q	0.3%
	USD	Core Retail Sales m/m	0.0%
	USD	Retail Sales m/m	0.1%
	USD	Import Prices m/m	-1.4%
	USD	UoM Consumer Sentiment	92.6
Feb 13